Plus   Neg

EasyJet Cancels Further Flights Amid Covid-19; To Operate Rescue Flights

Low-cost airline easyJet Plc (ESYJY.PK,EZJ.L) announced Monday further significant cancellations due to significantly lower customer demand amid the Coronavirus or COVID-19 pandemic.

Due to the unprecedented level of travel restrictions being imposed by governments, the company sees the cancellations will continue on a rolling basis for the foreseeable future that could result in the grounding of the majority of the easyJet fleet.

EasyJet said it will continue to operate rescue flights for short periods, in order to repatriate customers.

According to the firm, aircraft groundings will remove significant levels of variable costs. The company is also taking various actions to remove cost and non-critical expenditure from the business at every level. This would help mitigate the impact from COVID-19.

Regarding the outlook, the company said it is not possible at this stage to provide financial guidance for the remainder of the FY20 financial year due to the continued uncertainty.

Johan Lundgren, easyJet CEO said, "European aviation faces a precarious future and it is clear that coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over."

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Latam Airlines Group SA, one of the largest air carrier in South America, has filed for bankruptcy protection in New York amid the ongoing Covid-19 pandemic, which has grounded flights worldwide. This Chapter 11 filing allows Latam to work with its creditors and other stakeholders to reduce its debt,... Pizza Hut said it is giving away 500,000 free pizzas to 2020 graduates in the Unites States. The pizza chain, owned by Yum! Brands, offers one free medium 1-topping pizza to all diploma/degree earning individuals until supplies last. The company is partnering with America's dairy farmers for the offer, which can be claimed until Thursday and redeemed until June 4. Merck & Co. Inc. on Tuesday announced deals, including an acquisition and two collaborations that will enable the U.S. drugmaker to join the race to develop coronavirus vaccines and drugs. Shares of Merck were rising almost 4 percent in the pre-market. Merck said it has agreed to acquire privately-held Themis, an Austria-based company focused on vaccines and immune-modulation therapies.
Follow RTT