TOP NEWS: easyJet Thins Schedule To Focus On Profitable Flying

(Alliance News) - easyJet PLC on Tuesday said it has suffered reduced demand for travel as ...

Alliance News 8 September, 2020 | 9:06AM
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(Alliance News) - easyJet PLC on Tuesday said it has suffered reduced demand for travel as customer confidence to make holiday plans has been hurt by constantly changing government restrictions.

The stock was 4.0% lower in morning trading in London at 603.40 pence a share.

The budget airline plans to fly slightly less than the 40% of planned capacity previously expected for the fourth quarter as a result of the UK's travel quarantine measures.

"Due to the constantly evolving government restrictions across Europe and quarantine measures in the UK, including yesterday's announcements that removed seven Greek islands from the exemption list, customer confidence to make travel plans has been negatively affected," easyJet said.

The UK government on Tuesday said arrivals from seven Greek islands - Lesvos, Tinos, Serifos, Mykonos, Crete, Santorini and Zakynthos - will need to self-isolate for 14 days, but mainland Greece is to maintain its exemption.

The airline added that it "would not be appropriate" to maintain any forward looking financial guidance, for the 2020 and 2021 financial years, at this time.

easyJet Chief Executive Johan Lundgren said: "We know our customers are as frustrated as we are with the unpredictable travel and quarantine restrictions. We called on the government to opt for a targeted, regionalised and more predictable and structured system of quarantine many weeks ago so customers could make travel plans with confidence."

Going forward, the FTSE 250 air carrier said it will continue to focus on delivering a flying schedule that drives a positive contribution, while maintaining focus on minimising cash burn through its cost cutting programme across all areas of the business.

easyJet will also continue to review its liquidity position on a regular basis to assess any further funding opportunities, it said.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
easyJet PLC 838.80 GBX 0.26 -

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