EasyJet cuts capacity as Covid-19 measures hit demand

UK budget airline easyJet said it was cutting its flying schedule as changing government travel restrictions and coronavirus quarantine measures continued to hit demand.

The airline said it now expected to fly slightly less than the 40% planned capacity for the fiscal fourth quarter, highlighted at its third quarter trading update. It also pulled earnings guidance for 2020 or 2021.

Constant changes to safe travel areas, including the UK government's decision to remove seven Greek islands from its exemption list, meant customer confidence to make travel plans has been negatively affected," the carrier said on Tuesday.

“EasyJet will continue to focus on delivering a flying schedule that drives a positive contribution while maintaining focus on minimising cash burn through our cost out programme that will drive down costs in all areas of the business,” the company said in a statement.

It added that it would also continue to review its liquidity position on a regular basis to assess any further funding opportunities.

“Following the imposition of additional quarantine restrictions to seven Greek Islands and the continued uncertainty this brings for customers, demand is now likely to be further impacted and therefore lower than previously anticipated,” said chief executive Johan Lundgren.

“We know our customers are as frustrated as we are with the unpredictable travel and quarantine restrictions. We called on the government to opt for a targeted, regionalised and more predictable and structured system of quarantine many weeks ago so customers could make travel plans with confidence."

Lungdren said it was difficult to overstate the impact of the pandemic and associated government policies and demanded sector-specific support for aviation including the removal of air passenger duty for at least 12 months and the alleviation of air traffic control charges.