Tag Archives: easyJet (UK)

easyJet reports €1.4 billion (£1.27 billion, $1.6 billion) yearly loss; first loss in 25 years

Commenting on the results, Johan Lundgren, easyJet Chief Executive said:

“I am immensely proud of the performance of the easyJet team in facing the challenges of 2020. We responded robustly and decisively, minimising losses, reducing cash burn and launching the largest Cost Out and restructuring program in our history – all while raising more than £3.1 billion in liquidity to date.

“easyJet has not only withstood the impact of the pandemic, but now has an unparalleled foundation upon which to emerge strongly from the crisis. Our unmatched short haul network and trusted brand will see customers choose easyJet when returning to the skies.

“While we expect to fly no more than 20% of planned capacity for Q1 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.

“We know our customers want to fly with us and underlying demand is strong, as evidenced by the 900% increase in sales in the days following the lifting of quarantine for the Canary Islands in October. We responded with agility adding 180,000 seats within 24 hours to harness the demand.

“And last week we saw the welcome news about a possible imminent vaccine roll out.

“I would like to thank everyone at easyJet for their work which has left us well positioned and expecting to bounce back strongly.”

Summary

 In the year ending 30 September 2020, through its disciplined and prudent approach, easyJet has: o Focused on cash generative flying
o Successfully cut operating costs and capex in order to reduce cash burn
o Raised over £2.4 billion in liquidity

o Retained strong customer satisfaction scores

  •   Due to the impact of COVID-19, passenger numbers for the year ending 30 September 2020 decreased by

    50.0% to 48.1 million (2019: 96.1 million)

  •   Capacity1 decreased by 47.5%
  •   Load factor only decreased by 4.3 percentage points to 87.2% due to a prudent approach to capacity
  •   Total revenue decreased by 52.9% to £3,009 million (2019: £6,385 million). Total Airline revenue per seat2 decreased by 10.6% to £54.35 (2019: £60.81). Airline revenue per seat at constant currency3 for the year ending 30 September 2020 decreased by 10.3%, reflecting growth of 10.2% in H1 and contraction of 27.5% in H2
  •   Headline Airline cost per seat excluding fuel at constant currency3 increased by 30.2% to £56.33, mainly due to the volume impact of the H2 capacity decrease. Headline Airline cost per seat increased by 21.7% to £69.03 (2019: £56.74)
  •   Largest cost-out programme launched in easyJet’s history
  •   100% of CO2 from fuel and operations were fully offset, as easyJet remains the only major airline to operate

    fully carbon neutral flying on all flights

  •   Non-headline costs of £438 million (2019: £3 million positive). Total Airline cost per seat, including the impact of non-headline items was £77.01 (2019: £56.71)
  •   Headline loss before tax of £835 million (2019: £427 million profit), within the guidance range of £815 to £845 million
  •   Reported loss before tax of £1,273 million (2019: £430 million profit)
  •   Headline ROCE for the year decreased to (19.9)% (2019: 11.4%)
  •   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 board will not be recommending the payment of a dividend, in light of the loss for the year (2019: 43.9p per share dividend paid)

    Outlook

  •   Based on current travel restrictions in the markets in which we operate, easyJet expects to fly no more than c.20% 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
  •   Capital expenditure for the financial year to 30 September 2021 is expected to be around £600 million
  •   easyJet has been operating since March 2019 such that it is ready for all possible Brexit outcomes. We are structured as a pan-European airline group with three Air Operator Certificates based in Austria, Switzerland and the UK. Around 45% of our equity capital is held by qualifying European nationals
  •   At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year

More from BBC.

Berlin Brandenburg Airport Willy Brandt starts operations

The new Terminal 1 at Berlin Brandenburg Airport Willy Brandt (BER) was opened on October 31 with the landing of the first two aircraft operated by easyJet and Lufthansa. Upon arrival, the passengers, including easyJet CEO Johan Lundgren and Lufthansa CEO Carsten Spohr, were welcomed in Terminal 1 by the head of the airport company, Engelbert Lütke Daldrup. The symbolic opening act took place in a small circle and was also attended by the Minister-President of the State of Brandenburg, Dietmar Woidke, the Governing Mayor of Berlin, Michael Müller, the Federal Minister of Transport and Digital Infrastructure, Andreas Scheuer MdB, and the Chairman of the Supervisory Board of the airport company, Rainer Bretschneider. The first commercial flights will arrived at Terminal 1 in the evening, while the first easyJet flight to London Gatwick will departed from here in the morning of November 1.

BER boasts excellent transport links. In addition to a dedicated motorway connection, a new six-track railway station under Terminal 1 ensures direct access to rail services. The station had previously already been commissioned on 25 October 2020. It is expected that around two thirds of passengers will reach the airport by train. Numerous bus lines also connect the airport with Berlin and the surrounding area at frequent intervals.

The airport covers a total area of 1,470 hectares, the equivalent of around 2,000 football pitches. Terminals 1 and 2 are located between the two parallel runways, while Terminal 5, the former Schönefeld Airport, is in the northern area. The two runways can be operated independently. In addition to the northern runway, which has been the main runway used so far, flights will also be operated from the southern runway starting from November 4.

The new airport concentrates all air traffic in the German capital region in one location with a total capacity of over 40 million passengers per year. Around 25 million passengers can be handled at Terminal 1. This means that sufficient capacity is available at Germany’s third largest airport location. More passengers are expected to board and disembark at BER than at any other location in Germany. This modern infrastructure will allow for a significant increase in long-haul services and connecting traffic in the future.

"Hauptstadtflieger" ("Capital City Plane") for the first LH flight to new Berlin Airport (BER) from MUC

Above Copyright Photo: Lufthansa Airbus A320-271N WL D-AINZ (msn 9442) (Hauptstadtflieger – BER) MUC (Arnd Wolf). Image: 951788.

 

easyJet sells and leases back nine Airbus A320 family aircraft to raise capital

easyJet issued this statement:

Following high levels of demand from the operating lease marketplace, easyJet  has engaged with a number of operating lessors to raise further liquidity, which will be used to further strengthen easyJet’s financial position. easyJet confirms the sale and leaseback of nine aircraft with two counter parties. The transactions generate total cash proceeds of $398.6 million (€337.3 million).

The first transaction was executed with Wilmington Trust SP Services (Dublin) Limited for the sale and leaseback of five Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of $191.1m (approximately £146.5m), and are leased for an average term of 117 months, creating lease obligations of £123.7m. The assets had a net book value at the time of transaction of approximately £116.2m.

The second transaction was executed with Sky High 112 Leasing Company Limited for the sale and leaseback of four Airbus A320 family aircraft. The aircraft will generate cash sales proceeds of $207.5m (approximately £159.1m), and are leased back for an average of 116 months, creating lease obligations of £108.0m. The assets had a net book value at the time of transaction of approximately £140.2m.

Over the terms of the nine leases the average incremental net annual headline cost reflected in easyJet’s income statement will be c. £15 million, which is driven by increases in interest charges and depreciation.

Once these two transactions are completed, easyJet will retain 152 fully owned and unencumbered aircraft, representing approximately 44% of the fleet.

easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding options, including those that exist in the robust sale and leaseback market.

easyJet aircraft photo gallery:

 

easyJet to close three UK bases

easyJet (UK) has now confirmed it will close three bases including London-Stansted, London-Southend and Newcastle effective on September 1, 2020.

The airline will continue to serve Amsterdam, Belfast, Edinburgh, and Glasgow from Stansted, and Nice, Belfast, and Bristol will continue to be served from Newcastle.

easyJet aircraft photo gallery:

easyJet aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=n6hKD5&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

easyJet announces restart of flying from June 15

easyJet has made this announcement:

A small number of mainly domestic flights, from 21 European airports will restart from June 15, 2020

This includes many UK domestic routes, including from London Gatwick, Bristol, Birmingham, Liverpool, Newcastle, Edinburgh, Glasgow, Inverness, Belfast, and Isle of Man.

easyJet is introducing new measures to help ensure safety and wellbeing including enhanced aircraft cleaning and disinfection and requirement for passengers and crew to wear masks.

easyJet has announced that it will resume some flights on June 15, 2020. Services will be operating from London Gatwick, Bristol, Birmingham, Liverpool, Newcastle, Edinburgh, Glasgow, Inverness, Belfast, and Isle of Man in the UK. In addition, flying will resume in France from Nice, Paris Charles de Gaulle, Toulouse, Bordeaux, Nantes, Lyon and Lille, as well as from Geneva in Switzerland, Lisbon and Porto in Portugal, and Barcelona in Spain.

 

Flying will principally be on domestic routes alongside a minimal number of international routes. The airline expects to increase flying as customer demand continues to build and restrictions are relaxed. During the lockdown period the fleet has been grounded the aircraft have been maintained in a flight ready condition to enable the airline to resume flights quickly at the right time.

 

A new range of additional measures will be in place to help ensure the safety and wellbeing of all customers and crew onboard. These include enhanced aircraft disinfection for easyJet aircraft; customers, cabin and ground crew will be required to wear masks; there will also initially be no food service onboard flights, all of which operate on a short-haul network.

The measures have been implemented in consultation with aviation authorities ICAO and EASA, and in line with relevant national authorities and medical advice through the airline’s chief medical adviser.

 

Johan Lundgren, CEO of easyJet, commented:

 

“I am really pleased that we will be returning to some flying in the middle of June. These are small and carefully planned steps that we are taking to resume operations. We will continue to closely monitor the situation across Europe so that when more restrictions are lifted the schedule will continue to build over time to match demand while also ensuring we are operating efficiently and on routes that our customers want to fly.

 

“The safety and wellbeing of our customers and crew remains our highest priority which is why we are implementing a number of measures enhancing safety at each part of the journey from disinfecting the aircraft to requiring customers and crew to wear masks. These measures will remain in place for as long as is needed to ensure customers and crew are able to fly safely as the world continues to recover from the impact of the coronavirus pandemic.

“We look forward to welcoming our customers back onboard in June.”

The airline has also today released a video outlining the new measures that will be in place for customers’ well being for when they next travel. The video can be viewed here: https://vimeo.com/420797408/e0c5ccb978.

 

NEW MEASURES:

 

AIRCRAFT CLEANING:  

The additional cleaning and disinfection procedures for aircraft cabins are on top of an existing daily aircraft cleaning schedule. Every aircraft will be subject to a daily disinfection process which provides surface protection from viruses that lasts for at least 24 hours.

 

ON BOARD MEASURES:

All passengers and crew will be required to wear masks onboard at all times.  Initially when flights restart, the Bistro and Boutique service will not be available. Furthermore, all flights will be equipped with spare sanitary equipment including masks, gloves and hand sanitiser to ensure these are available to customers and crew at all times onboard, if required. easyJet’s aircraft are already fitted with state of art filtration technology. High efficiency particle arresting filters filter 99.97% of airborne contaminants in the cabin, including viruses and bacteria. These filters are the same as those used in hospitals and through them the cabin air gets replaced every 3-4 minutes.

 

AIRPORT MEASURES:

To protect customers and ground crew in the airport, customers will be able to use our automated bag drop to check in their hold luggage and screens will be in place at our check in desks and at airports where auto bag drop is not available. Ground crew and cabin will not handle any customer documents during boarding so customers will be asked to present and scan their own documents.  easyJet already encourages all customers to check in online and download their boarding pass onto their smart phone or to print their own boarding passes before arriving at the airport.  Our ground crew will also wear gloves and masks at all times when transporting customer luggage to and from the aircraft.

 

Further recommendations for airports indicate there may also be measures in places at airports such as wearing masks, self-declaration health forms to be completed ahead of departure, and temperature screening. The airline is working with all airports where it operates to understand what measures will be in place to protect customers.

SOCIAL DISTANCING:

Customers will be able to practice social distancing in the airports, at gates and during boarding. Onboard, and where possible, crew will invite customers to sit at distance from customers not in their party where seats are available.

 

easyJet will continue to work with the relevant national authorities to review and assess what measures are required in the longer term.

Some flights will be resuming on the following routes from June 15, 2020:

UK 
Belfast Birmingham
Belfast Bristol
Belfast Edinburgh
Belfast Glasgow
Belfast London Gatwick
Belfast Liverpool
Belfast Newcastle
Birmingham Belfast
Bristol Belfast
Edinburgh Belfast
Edinburgh London Gatwick
Glasgow Belfast
Glasgow London Gatwick
Inverness London Gatwick
Isle of Man London Gatwick
Isle of Man Liverpool
London Gatwick Belfast
London Gatwick Edinburgh
London Gatwick Glasgow
London Gatwick Inverness
London Gatwick Isle of Man
London Gatwick Nice
Liverpool Belfast
Liverpool Isle of Man
Newcastle Belfast
France
Bordeaux Lyon
Bordeaux Nice
Paris Charles de Gaulle Nice
Paris Charles de Gaulle Toulouse
Lille Nice
Lyon Bordeaux
Lyon Nantes
Nice Bordeaux
Nice Paris Charles de Gaulle
Nice London Gatwick
Nice Lille
Nice Nantes
Nice Toulouse
Nice Geneva
Nantes Lyon
Nantes Nice
Toulouse Paris Charles de Gaulle
Toulouse Nice
Switzerland
Geneva Porto
Geneva Barcelona
Geneva Lisbon
Geneva Nice
Spain
Barcelona Geneva
Portugal 
Porto Geneva
Lisbon Geneva

 

easyJet is a cyber attack victim

easyJet has made this announcement:

More on the attack form the BBC.

Cybersecurity industry experts commented:

 

Mark Bower, senior vice president, comforte AG:

“The aviation industry is struggling at present given the current pandemic, so seeing another major airline succumb to a data breach is not pleasant. On first glance, EasyJet has followed the correct procedures and informed all affected customers who have had their sensitive data compromised. However, this situation could have been avoided.

 

Airlines and the GDS booking platforms that support them contain huge amounts of regulated PII in passenger data that’s potentially at risk. Organizations that process PII data need to take a serious approach to data-centric security. There are proven methods available which can reduce the impact of such data breaches. Tokenization is a great example. With such an approach, all sensitive data elements get replaced by tokens. That means that in the case of a data breach, the data is worthless for attackers. Furthermore, as it is the data elements themselves that are protected, security travels with the data. No matter if it is processed and stored within the company network, or whether it moves outside the perimeter. Too often we see organization only secure what is mandated – like credit card data, leaving PII exposed at scale. If the full spectrum of personal data isn’t protected as required by modern privacy laws, businesses must realize that it is their brand and reputation that will be negatively affected.”

 

Brian Higgins, security specialist, Comparitech:

“Attacks like this have enormous, knock-on effects for the victims. Once the attack is made public criminal organizations will immediately seek to take full advantage of the fear and uncertainty the 9 million customers of EasyJet are currently feeling and begin campaigns to exploit them.

 

They will email, call on the telephone or in person, make contact via social media channels. In fact they will use any and all methods to make contact, pretend to be EasyJet and use that fear and uncertainty to make people reveal more of their personal information, login credentials, bank details etc. in order to commit more crime. Any and all unsolicited contact from EasyJet should be ignored, however difficult that may be. Check their official website or contact the Office of the Information Commissioner for advice. Never engage with any other offers of help. They will almost certainly cause you more harm.

 

A company the size of EasyJet should have a comprehensive incident response plan to deal with this attack. The coming days will show us if that is the case, although how they can assure their customers that ‘there is no evidence that any personal information of any nature has been misused’ shows a worrying naivety. This is the golden hour for cyber criminals. EasyJet customers have one line of defense right now: ignore them.”

 

easyJet crew volunteers will support NHS ExCeL field hospital, defers delivery of 24 Airbus aircraft

easyJet (UK) has made this announcement:

The NHS is asking for easyJet cabin crew to volunteer to use their training to supporting clinical services on the frontline.

easyJet cabin crew volunteers will be supporting the NHS ExCeL field hospital to provide vital help as part of the country’s nationwide effort to support frontline clinical staff faced with battling the coronavirus pandemic currently impacting the UK. The NHS is enlisting the help of cabin crew in a bid to help staff new Nightingale hospitals.

Those who sign up will perform clinical support roles, under the close instruction of nurses and senior clinicians on the wards at the NHS Nightingale Hospitals across the country. The NHS has confirmed that they are being built in London, Birmingham and Manchester with other site being considered.

They will change beds, tend to patients and ensure they are as comfortable as possible. Many airline staff are ideal volunteers as they have been first aid trained and hold other medical qualifications as well as being security cleared. Expert training will be provided to all new recruits when they sign up. With the majority of flights currently suspended as a result of the pandemic, cabin crew will be able to put their unique skill set to use during this time to provide much needed support to the NHS. easyJet has around 4000 cabin crew in the UK across easyJet’s 11 bases up and down the UK.

Tina Milton, Director of Cabin Services for easyJet, commented:

“We have all needed the NHS at some point in our lives and so we are so proud that our crew can now help to support the NHS at this crucial time.

“The NHS is at the forefront of dealing with this health emergency but the training and skills our cabin crew have, working closely with the medical professionals, could help make a real difference.”

Ruth May, chief nursing officer for England said:

“Nurses, doctors and other vital health and social care staff are working day and night to provide the best possible care to patients as the NHS continues to fight this global health pandemic.

“The NHS is mobilising like never before, but the scale of this challenge has not been seen in peacetime so we need all the support we can get.

“Thousands of nurses, medics and other expert staff are returning to work alongside us, but we need everyone to do their bit – whether that is working in one of our current health or social care services, working in the Nightingale Hospital, volunteering to help the NHS or following government advice to stay at home, protect the NHS and save lives.”

Ashley Brown who has been a cabin crew member for easyJet for the past three years and   formerly worked for the NHS, commented on why he has volunteered:

“I, like everyone, is so grateful to our NHS workers for all they are doing for the country. We all know how much pressure they are under right now and so when the appeal came for cabin crew to assist in the fight against Covid-19 I felt compelled to apply. Prior to joining easyJet I used to work for an NHS Trust so I know how valued the health service is and so feel passionate about supporting the NHS once again.

“Cabin crew are in a good position to help because of the first aid training we receive for our job along with the security checks we undergo so I am sure I will be joined by so many of my fellow crew at easyJet and I am glad we are able to help.”

The airline has been working with the NHS to enable both its crew and head office communities to volunteer during this time, from mobilising highly-skilled crew volunteers to directly support clinical services in hospitals, to volunteering as an NHS responder.

In other news, easyJet has deferred delivery of 24 new Airbus aircraft due for delivery in 2020-2022.

easyJet aircraft photo gallery:

easyJet grounds its entire fleet

easyJet today grounded its entire fleet.

The airline issued this short statement:

“As a result of the unprecedented travel restrictions imposed by governments in response to the coronavirus pandemic and the implementation of national lockdowns across many European countries, easyJet has, today, fully grounded its entire fleet of aircraft.

Over recent days easyJet has been helping to repatriate customers, having operated more than 650 rescue flights to date, returning home more than 45,000 customers. The last of these rescue flights were operated on Sunday March 29.”

easyJet (UK) aircraft photo gallery:

easyJet to ground majority of fleet from March 24

easyJet has made this announcement:

Following the country lockdowns, travel restrictions and changes to travel advice across its network, easyJet has taken the decision to ground the majority of its fleet of aircraft from Tuesday, March 24 onwards.

We will continue to operate rescue flights as required to repatriate customers and anticipate most of our rescue operations to be completed by Monday, March 23.

Details of the rescue flights we are operating to repatriate customers can be found here: https://www.easyjet.com/en/policy/coronavirus-rescue-flights.  If you are currently abroad, we urge you to rebook yourself onto a rescue flight prior to Monday.

In addition, we anticipate operating a minimal schedule of essential services on some routes. This will be a maximum of 10% of our usual capacity during this time of year and mainly routes to, from and within the UK.

We will continue to review our flight schedule on a weekly basis to ensure that it matches current demand. ​With recent guidance, we recognize many customers with existing reservations do not intend to travel, and so we would encourage them to change their tickets for free now, as this will allow us to best match our remaining flying to the demand.  easyJet continues to waive all change fees for customers who want to move their flight to a later date and they can now change up until February 28, 2021.  Customers will be contacted directly if their flight is cancelled and will be provided with their options.

Johan Lundgren, easyJet CEO, said:

“These are unprecedented times for the airline industry. We know how important it is for customers to get home and so are continuing to operate rescue flights over the coming days to repatriate them.  Significantly reducing our flying program is the right thing to do when many countries have issued advice to their citizens not to travel unless it is essential and the aircraft groundings will also remove significant levels of variable costs at a time when this remains crucial.”

easyJet aircraft photo gallery:

easyJet to suspend all flights to Spain on March 17

easyJet has made this announcement:

Spain is the latest authority to impose flight restrictions. We’re flying a full Spanish schedule on March 15-16 to help get people home but unfortunately will need to cancel flights from March 17 onwards.

easyJet aircraft photo gallery: