Rollin coverage of the latest economic and financial news, as budget airline easyJet warns it lost up to £845m last year
Easyjet reports that it has cut UK staff levels “successfully”:
easyJet launched an employee consultation process on proposals to reduce staff numbers by up to 30%, including optimising our network and bases, improving productivity and promoting more efficient ways of working.
The UK consultations with management and administration staff, UK cabin crew and UK pilots have now concluded successfully. Discussions with the relevant unions and works councils were constructive and have resulted in greatly increased seasonal and flexible working patterns whilst avoiding the need for compulsory redundancies. This will make a material difference to our annual cost base and cash burn, particularly over the winter months.
Consultation processes are underway in Germany, Portugal and Switzerland.
EasyJet says that the UK government’s quarantine rules had a significant impact on business last month.
During the last quarter (July to September), it only flew 38% of planned capacity. It nudged over 50% in August, before the prospect of 14-day quarantining for arrivals from popular sunspots like Spain, France, and Portugal deterred customers from booking.
Flying peaked in August and then tapered significantly during September when customer demand was materially affected by changes in government travel guidance and quarantine rules.
Customers are booking at a very late stage and visibility remains limited.