No quick recovery for easyJet as £845m loss expected

The share price of easyJet (LON: EZJ) remained flat as the company revealed that it expects to post a loss of up to £845m for the full financial year.

As part of its outlook, it also noted that it expects to be flying at around 25 percent of capacity for the the first quarter of the new financial year.

No dividend will be paid for the year to 30 September with its full year results due to be reported on 17 November.

easyJet reaffirmed that its focus will be on profitable flying to try and counter the losses expect as well as burn rate on cash:

“Throughout we have taken a very prudent and conservative approach to capacity and this disciplined approach has seen us deliver a better than expected cash burn outcome in Q4 and will see us continue to focus on profitable flying over the winter season in order to minimise losses and cash burn during the first half of 2021.

Based on current travel restrictions we expect to fly c.25% of planned capacity for Q1 2021 but we retain the flexibility to ramp up capacity quickly when we see demand return and early booking levels for summer ’21 are in line with previous years.”

Johan Lundgren, CEO of easyJet

The share price of EZJ was around 526p following the announcement with little movement.

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