EasyJet passenger numbers plunge 99.6% as coronavirus grounds flights

Passenger numbers slumped 99.6% at easyJet in the last quarter as the coronavirus crisis grounded most of the aviation industry - and its boss has hit out at the Government’s “blanket” Spanish quarantine rules.

The airline said just 117,000 passengers used it in the three months to June 30, a near-100% plunge on the same period in 2019. Revenues were £7 million in the quarter, down 99.6% and missing analysts’ forecasts of £104 million.

Chief executive Johan Lundgren said the rules, introduced at short notice last month, did not acknowledge that Covid infection rates were far lower in the Balearic and Canary Islands than the rest of Spain. The industry is pushing for restrictions on those holiday destinations to be eased.

He said: “More engagement is needed with industry. The blanket approach is just no good. The damage, unfortunately, in terms of the disruption for customers from the need to quarantine for 14 days, has already taken place.”

Lundgren said that demand for Spanish routes was now “much lower”. The airline is scrambling to salvage summer trading after lockdowns grounded nearly all flights.

eayJet plunged to a £324.5 million loss for the quarter, from a £174.2 million profit the prior year. Just 10 aircraft were operated running 709 flights, down from 315 aircraft running 165,656.

But, crucially, the company has managed to slash costs meaning its “cash burn” is lower than the £30 million to £40 million it had previously forecasts. Its totally third-quarter cash burn was £774 million, down from the £1 billion previously guided.

EasyJet’s flights were grounded on March 30 and it began flying again in earnest on June 15. Lundgren said: “I am really encouraged that we have seen higher than expected levels of demand with load factor of 84% in July with destinations like Faro and Nice remaining popular with customers.

"Our bookings for the remainder of the summer are performing better than expected and as a result we have decided to expand our schedule over the fourth quarter to fly c.40% of capacity. This increased flying will allow us to connect even more customers to family or friends and to take the breaks they have worked hard for.”

EasyJet last month kicked off a consultation on plans to close its bases at Southend, Stansted and Newcastle airports. Nearly 1300 of its UK crew members and 727 UK-based pilots are reportedly at risk of redundancy and the airline warned in May up to 30% of its 15,000 strong workforce could be cut as it grapples with the fallout from the pandemic.