EasyJet PLC (LON:EZJ) has posted an eye-watering £1.2bn full-year loss after passenger numbers halved due to COVID-19 restrictions.
The airline only flew 48mln people in the year to September 30, compared to 96mln the period before.
READ: easyJet cuts winter capacity again, raises US$169.5mln with sale and leaseback
Capacity decreased by 47.5% but the load factor was 87% after flight cancellations.
Total revenue tanked 53% to £3bn, while the £1.2bn loss before tax came in after a £430mln profit a year ago - the first negative reading since the company's foundation in 1995.
During the pandemic, easyJet has raised £3.1bn and its net debt position is now £1.1bn.
The budget carrier expects to fly no more than 20% of planned capacity for the quarter ending in December and said it remains focused on cash generative flying over the winter season to minimise losses during the first half.
Capital expenditure for the current financial year is expected to be around £600mln but the FTSE 250 company did not provide any further guidance due to uncertainty.
The firm continues implementing its cost-cutting programme to cut a third of its workforce, which has already been completed in the UK while unions in Germany, the Netherlands and Portugal have finalised discussions.
Workers in six of the countries where it operates have agreed a two-year pay freeze and 10% of the UK crew have moved to seasonal contracts to operate in the peak months only.
To reduce fuel costs, easyJet is using shorter flight routing plans, flying slower to save fuel and reducing usage of ground power units.
“Although capacity is still expected to be down dramatically in the first quarter of easyJet’s 2021 financial year, positive vaccine news has promised light at the end of the tunnel. easyJet will be a different company than the one that went into this crisis," said William Ryder, analyst at Hargreaves Lansdown.
"The budget airline has dramatically reduced the size of its workforce, cut costs and the balance sheet is badly scarred. Investors should remember that a severe recession is still possible, and there may still be turbulence on the journey to a recovery.”
Shares shed 3% to 751.29p on Tuesday morning.
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