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EasyJet Plans To Reduce Fleet Size; Sees Up To 30% Job Cuts

easyJet Plc (ESYJY.PK,EZJ.L) announced Thursday an update on capacity, fleet and cost structure plans. Regarding fourth quarter capacity, the company currently expects to fly around 30 percent of the planned capacity flown in the same quarter last year.

In line with IATA projections, easyJet expects that the levels of market demand seen in 2019 are not likely to be reached again until 2023.

Further, easyJet said it will launch an employee consultation process in the coming days on proposals to reduce staff numbers by up to 30 percent, reflecting the reduced fleet.

Looking further forward, easyJet expects its year end 2021 fleet size to be at the bottom end of fleet range at around 302 aircraft. This is 51 aircraft lower than the anticipated fleet size for year end 2021 announced prior to Covid-19.

Johan Lundgren, easyJet CEO said, "Against this backdrop, we are planning to reduce the size of our fleet and to optimise the network and our bases. As a result, we anticipate reducing staff numbers by up to 30 percent across the business and we will continue to remove cost and non-critical expenditure at every level. We will be launching an employee consultation over the coming days."

As announced earlier, the company will resume flying on June 15, servicing a small number of routes, where sufficient customer demand is expected to support profitable flying. The initial schedule will comprise mainly domestic flying in the UK and France.

The company will announce further routes as customer demand increases and government restrictions across Europe are relaxed.

The company said the booking trends on the resumed flights have been encouraging, and the demand indications for summer 2020 are improving, albeit from a low base.

easyJet will release half year results on June 30.

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