Easyjet foresees losses in 2020 close to 1 billion euros
The British airline Easyjet has warned that it could close 2020 with an annual loss of 845 million pounds (931 million euros) due to the drastic fall in its activity as a result of the coronavirus pandemic. This will be the first year in the history of the airline in which it will close with annual losses.
In view of the announced losses, Easyjet CEO Johan Lundgren has asked the British government for a "package of measures" to stimulate airlines. So far, according to Reuters, Easyjet has done the following to weather the current circumstances:
- They received a loan of 600 million pounds from the government
- Cut 4,500 jobs
- Raised 608 million pounds through the sale of planes
- Obtained 419 million pounds from shareholders
The British company, which fell 0.5% this morning on the London Stock Exchange, has accumulated a drop of 63% from January to October 2020. In 2019, its shares rose 28%. In 2018, they fell 24.5% after appreciating 45.6% in 2017. In 2016, it sank more than 40%.
The fall in Easyjet shares this morning contrasts with the strong rises that the large airlines have led after it became known that the president of the United States, Donald Trump, intends on approving new aid to this sector:
- United Airlines and American Airlines closed last night with a rise of more than 4% on the stock market
- The British Hispanic airline IAG, a commercial partner of American Airlines, soared this morning on the Madrid Stock Exchange more than 7%
- Germany's Lufthansa was up more than 3%
- France's Air France KLM was also up more than 3%
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