EasyJet has revealed its 2020 full year results, reporting a £1.27 billion loss.
In the year ending 30 September 2020, the carrier says it has focused on cash generative flying and successfully cut operating costs and capex in order to reduce cash burn. The airline has also raised over £2.4 billion in liquidity and retained strong customer satisfaction scores.
However, due to the impact of Covid-19, passenger numbers for the year ending 30 September 2020 decreased by 50 per cent to 48.1 million from 96.1 million in 2019.
Total revenue for the airline decreased by 52.9 per cent to £3,009 million and total airline revenue per seat decreased by 10.6 per cent to £54.35 (2019: £60.81).
According to easyJet, which recently announced a partnership with Icelandair, 100 per cent of CO2 from fuel and operations were fully offset. It also reported a robust balance sheet strength, with total liquidity raised during Covid-19 of £3.1 billion, a net debt position of £1.1 billion (2019: net debt of £326 million) and investment grade credit ratings.
The airline says its board will not be recommending the payment of a dividend in light of the loss for the year. Based on current travel restrictions, easyJet expects to fly no more than c.20 per cent of planned capacity for Q1 financial year 2021.
“We remain focused on cash generative flying over the winter season in order to minimise losses during the first half. We retain the flexibility to rapidly ramp up capacity when we see demand return”, the carrier commented.
Capital expenditure for the financial year to 30 September 2021 is expected to be around £600 million. However, at this stage, given the continued level of short-term uncertainty, the carrier says it would not be appropriate to provide any further financial guidance for the 2021 financial year.