This week, Easyjet announced its first ever annual loss of nearly £1.3 billion, its only loss in 25 years of operating.
As Covid-19 grounded the airline’s planes, revenue disappeared. Revenues for the year to 30 September 2020, were reduced to £3 billion, only 47% of the £6.4 billion earned the year before.
Costs were cut by £1.7 billion from £6.0 billion to £4.3 billion, a drop of 28%. However, this was not enough to cover the £3.4 billion fall in revenue, taking annual profits from £0.4 billion to -£1.3 billion.
Passenger miles flown between 1 October 2019 and 30 September 2020 were 52% below the number flown during the prior 12 months. During the second quarter of 2020, the business was almost at standstill.
The pandemic has wiped £1.1 billion off the airline’s net assets leaving it with £1.9 billion.
Easyjet’s Swiss business has been hit hard. Year on year Swiss passenger numbers fell by 48% – down 45% in Geneva and around 50% in Basel.
Despite a steep rise in debt from £1.3 billion to £2.7 billion, at 30 September 2020 the company had cash reserves of £2.3 billion, up from £1.6 billion the year before.
Easyjet results (in English)