Shares of EasyJet plc (LON: EZJ) plunged 5.45% today after the budget airline reported a £1.2 billion annual loss driven by the huge drop in passenger numbers attributed to the coronavirus lockdown measures.
The airline flew 48 million passengers in the year ended September 30th as compared to 96 million passengers served in 2019. The company’s overall revenues were £3bn, a 53% drop as compared to last year resulting in a £1.2 billion pretax loss versus last year’s £430 million profit.
The budget airline clarified that it intends to fly at 20% of its capacity during the current quarter and will be focused on generating cash via the few flights that it will operate over the winter months.
EasyJet is still implementing cost-cutting measures including laying off a third of its employees with the process having been completed in the UK, while unions in Germany, Portugal and the Netherlands have reached an agreement with the carrier.
The airline has also agreed to a 2-year pay freeze with workers in six countries, while some workers have agreed to work only during the peak months. The carrier has adjusted its flight plans to take the shortest routes in order to slash fuel costs.
Easyjet share price
Easyjet shares plunged 5.45% today to trade at 735.2p having dropped from Monday’s closing price of 777.6p.