Rolling coverage of the latest economic and financial news, as the pandemic drags easyJet into its first annual loss ever
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Amid the recent excitement about Covid-19 vaccines, easyJet has this morning reminded us just what a grim year it’s been for the airline industry.
“While we expect to fly no more than 20% of planned capacity for Q1 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.
“We know our customers want to fly with us and underlying demand is strong, as evidenced by the 900% increase in sales in the days following the lifting of quarantine for the Canary Islands in October. We responded with agility adding 180,000 seats within 24 hours to harness the demand.
EasyJet pre-tax loss of £1.273bn for April-Sept.
passenger numbers down 50%, capacity cut 47%, revenue -53% to £3bn: expects to fly 20% of normal schedule Oct-Dec
Airline #easyjet confirms big losses up to end of Sept; more than £1.2billion; its first year of losses in its 25yr history ⏬ it confirms staff reduction of 30% has been completed without compulsory redundancies. Capacity will remain at 20%
Live Market Update from the CMC dealing desk – European Opening Calls:#FTSE 6406.47 -0.23%#DAX 13111.69 -0.2%#CAC 5463.57 -0.14%#IBEX 7957.37 -0.36%
Prices are indicative only. $FTSE $DAX $CAC $IBEX
Nonetheless the change in outlook and tone has been more than palpable, as pessimism about a Covid exit strategy has transformed into unbridled optimism, that we have a pathway to recovery, and multiple possible vaccine candidates.
This pathway will no doubt contain the odd pothole in the form of setbacks around further trials, and possible concerns about side effects, which may help explain why markets closed down from their intraday peaks.
