Europe’s second-biggest low-cost airline, EasyJet, plans to slash its workforce by 30%, translating to about 4,500 job cuts. The move seeks to ensure the airline stays afloat during the coronavirus pandemic that has seen a dip in the aviation industry revenues.
This comes even as the airline prepares to resume flights on 15th June 2020, albeit on a handful of routes, mainly within Britain and France. Additionally, it plans to reduce its fleet size, reiterating that levels of market demand seen in 2019 will not likely be reached until 2023.
The airline estimates that by the end of 2021, it will have reduced its fleet size by around 51 aircraft to approximately 302. This will mainly be achieved through measures such as deferring new aircraft arrivals. The airline has already deferred the delivery of 24 planes, helping to reduce near-term expenditure by more than 1 billion pounds ($1.2 billion).
Bloomberg reports that the airline has also taken out two loans, tapped the U.K.’s COVID Corporate Financing Facility, and is seeking as much as 650 million pounds ($796 million) through the sale and leaseback of aircraft. That would take total additional liquidity to about 2 billion pounds ($2.5 billion).
EasyJet is a British low-cost airline group with headquarters at London Luton Airport. It operates domestic and international scheduled flights on over 1,000 routes in more than 30 countries through its affiliate airlines; EasyJet U.K., EasyJet Switzerland, and EasyJet Europe.
EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It employs nearly 15,000 people throughout Europe but mainly in the U.K.
On 30th March 2020, the airline grounded its entire fleet due to the COVID-19 pandemic.
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