EasyJet Facing Turbulent Times Without Extra Funding

Budget carrier EasyJet has told Whitehall that it may require additional government support to be able to survive through the winter.

EasyJet has warned the government that it may need further financial support from the state as the low price carrier braces itself for a brutal winter that will likely trigger hundreds of millions of pounds more in losses.

Uk government quarantine rules have put a ‘stranglehold’ on the aviation industry. Last-minute changes in the governments ‘safe list’ to fly have crippled services and left EasyJet and most other carriers to offer rebookings, credit notes or even refunds to passengers. Airports themselves haven’t managed to dodge the losses, only yesterday London Stansted, Manchester, and East Midlands Airports announced hundreds of job losses in the coming months.

An industry source said that the company, which has already accessed €672 (£600m) through the Bank of England’s Coronavirus Corporate Financing Facility, was taking “a prudent approach” to the management of its balance sheet after reporting a €364 (£325m) third-quarter pre-tax loss. All hopes were pinned on a new fast COVID testing system stationed at Heathrow airport but the response so far has been ‘lukewarm’ said one industry insider.

“There are no words that can adequately describe how deeply this crisis is impacting aviation.” Said the boss of the International Air Transport Association (IATA).

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Written by

Tony Winterburn

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