Adds background, particulars
LONDON, Nov 17 (Reuters) – EasyJet plunged to a 1.27 billion pound ($1.68 billion) loss within the 12 months to the top of September, exhibiting the extent of the impression of the pandemic on the British low-cost airline which had by no means earlier than made an annual loss in its 25 12 months historical past.
With journey at anaemic ranges in the course of the second wave of the virus in Europe, easyJet stated quarterly money burn, a key metric watched by traders eager to see prices decreased, improved to 651 million kilos from 774 million kilos within the earlier interval.
EasyJet additionally stated on Tuesday that after talks with the Financial institution of England and the UK authorities’s finance ministry, it should prolong its borrowing beneath a COVID Company Finance Facility, staggering repayments and relieving stress on its stability sheet.
The airline has repeatedly stated it’s protecting its liquidity place beneath evaluation because the outlook for journey has worsened.
The reported annual loss earlier than tax of 1.27 billion kilos in comparison with the 430 million kilos revenue it made within the earlier 12 months. On a headline foundation, it made a lack of 835 million kilos, in step with an October forecast.
It’s presently flying round 20% of deliberate capability and stated short-term uncertainty was such that it couldn’t present any monetary steerage.
To outlive the pandemic to this point, the airline has raised over 1 billion kilos from sale and leaseback offers for its plane, taken a 600 million pound mortgage from the federal government, lower 4,500 jobs, and tapped shareholders for 419 million kilos, and has stated it might have to do extra.
($1 = 0.7565 kilos)
(Reporting by Sarah Younger; modifying by James Davey and Paul Sandle)
((sarah.younger@thomsonreuters.com; +44 20 7542 1109; Reuters Messaging: sarah.younger.thomsonreuters@reuters.web))
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