Easyjet scales back flying capacity as new European lockdowns lead to further pain for airlines

Easyjet is to cut capacity further as lockdowns set in across Europe in the latest sign of airlines' pandemic pain.

The budget airline announced today that it is to fly no more than 20% of capacity for the rest of the year, down from previous expectations of 25% capacity.

The FTSE-250 listed company had already cut back its flying schedule, tapped shareholders and lenders for cash, and cut more than 4,000 jobs since March.

Easyjet said in a statement: “We remain focused on cash generative flying over the winter season in order to minimise losses during the first half and retain the flexibility to ramp capacity back up quickly when we see demand return."

Easyjet also said today that it has raised another £131 million through a sale and leaseback deal of 11 aircraft, as it looks to strengthen its balance sheets to see it through the crisis.

The carrier now owns around 41% of its fleet.