Easyjet expects to report first half losses in the range of £360 million to £380 million, with around half of this figure as a result of over-hedging on fuel and FX.
The low-cost carrier said it was in “a significantly over-hedged position from both a jet fuel and FX perspective”, with these expected to impact its first half figures by some £175 million to £185 million.
Easyjet’s entire fleet has been grounded since the end of March, and the airline continues to state that “At this stage there can be no certainty of the date for restarting commercial flights”.
The carrier did however offer some positive news, saying that following the earlier than usual release of seats for winter 20/21, “Bookings for winter are well ahead of the equivalent point last year, and this includes customers who are rebooking coronavirus-disrupted flights for later dates”.
Easyjet said that since introducing the option for customers to receive online vouchers for cancelled flights, “more than half of disrupted passengers have chosen vouchers or alternative flights”.
But it stated that “receiving a refund” is still an option – although judging by some of the hundreds of comments by our readers on this article, obtaining them maybe easier said than done.
CEO Johan Lundgren said that the carrier’s first half performance had been “very strong prior to the impact of coronavirus”, with a first half headline loss before tax expected to be in the range of £185 million to £205 million, representing an improved year-on-year first half headline loss before tax (£275 million in 2019).
The airline recently secured a £600 million loan from the Covid Corporate Financing Facility (CCFF), and furloughed staff are being paid through the Government job retention scheme
Easyjet has also deferred delivery of at least 24 Airbus aircraft which it was due to receive over the next three years.
“We remain focused on doing what is right for the company for its long term health and to ensure we are in a good position to resume flying when the pandemic is over,” said Lundgren.
“While the vast majority of our people are not able to work at this time, there is a small number working tirelessly to help our customers, and to plan for our return to the skies, whenever that might be”.