by This week, Easyjet announced its first ever annual loss of nearly £1.3 billion, its only loss in 25 years of operating. © Dennis Dolkens | Dreamstime.comAs Covid-19 grounded the airline’s planes, revenue disappeared. Revenues for the year to 30 September 2020, were reduced to £3 billion, only 47% of the £6.4 billion earned the year before. Costs were cut by £1.7 billion from £6.0 billion to £4.3 billion, a drop of 28%. However, this was not enough to cover the £3.4 billion fall in revenue, taking annual profits from £0.4 billion to -£1.3 billion. Passenger miles flown between 1 October 2019 and 30 September 2020 were 52% below the number flown during the prior 12 months. During the second quarter of 2020, the business was almost at standstill. The pandemic has wiped £1.1
Topics:
Investec considers the following as important: Business & Economy, Easyjet Switzerland, Editor's Choice
This could be interesting, too:
Investec writes Federal parliament approves abolition of imputed rent
Investec writes Abolition of imputed rent gets bogged down in complexity
Investec writes Swiss parliament accepts contentious budget
Investec writes Tourism one quarter of Switzerland’s traffic
This week, Easyjet announced its first ever annual loss of nearly £1.3 billion, its only loss in 25 years of operating.
As Covid-19 grounded the airline’s planes, revenue disappeared. Revenues for the year to 30 September 2020, were reduced to £3 billion, only 47% of the £6.4 billion earned the year before.
Costs were cut by £1.7 billion from £6.0 billion to £4.3 billion, a drop of 28%. However, this was not enough to cover the £3.4 billion fall in revenue, taking annual profits from £0.4 billion to -£1.3 billion.
Passenger miles flown between 1 October 2019 and 30 September 2020 were 52% below the number flown during the prior 12 months. During the second quarter of 2020, the business was almost at standstill.
The pandemic has wiped £1.1 billion off the airline’s net assets leaving it with £1.9 billion.
Easyjet’s Swiss business has been hit hard. Year on year Swiss passenger numbers fell by 48% – down 45% in Geneva and around 50% in Basel.
Despite a steep rise in debt from £1.3 billion to £2.7 billion, at 30 September 2020 the company had cash reserves of £2.3 billion, up from £1.6 billion the year before.
More on this:
Easyjet results (in English)
For more stories like this on Switzerland follow us on Facebook and Twitter.