Business

Covid-19: EASYJET could ground most of its planes to the ground

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(AOF) – Due to the unprecedented level of travel restrictions imposed by governments in response to the coronavirus pandemic and the significant reduction in customer demand levels, easyJet has made significant new cancellations. These actions could result in the immobilization of the majority of the British airline's fleet at low cost. At midday, the easyJet stock fell 21.67% to 616.30 pence, an evolution shared by its European peers.

To help mitigate the impact of Covid-19, easyJet says it is taking all necessary steps to eliminate non-critical costs and expenses from the business at all levels.

The group says it maintains a strong balance sheet including a £ 1.6 billion cash balance and an unused $ 500 million revolving credit facility.

At this point, given the continuing level of uncertainty, easyJet is unable to provide financial guidance for the remainder of 2020.

“European aviation faces a precarious future and it is clear that coordinated government support will be necessary to ensure the survival of the sector and its ability to continue to function after the crisis has passed”, said Johan Lundgren, the director general of easyJet.

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