EasyJet racks up first ever loss after Covid-19 pandemic slams demand

EasyJet is set to record its first-ever annual loss and is reviewing ways to raise more funds after the pandemic wreaked havoc with the budget carrier’s summer schedule. The UK firm lost as much as $1.1 billion in the year through September, according to a statement on Thursday. 

The airline has about £2.3 billion in cash to survive an extensive slump and called on the state for further support.

“Aviation continues to face the most severe threat in its history and the UK government urgently nee­ds to step up with a bespoke package of measures to ensure airlines are able to support economic recovery when it comes,” EasyJet said. The firm is in talks with the government for additional loans or other financing, Sky reported earlier. Like other airlines, EasyJet has been hard hit by the coronavirus.

 A resurgence in cases across Europe has resulted in renewed travel restrictions that have quashed any hopes of a recovery in demand. EasyJet has raised over £2.4 billion in cash since the start of the pandemic, including £419 million from an equity increase and £608 million by selling and leasing back planes.