easyJet PLC easyJet Statement - COVID-19 Update (1876G)
March 16 2020 - 3:00AM
UK Regulatory
TIDMEZJ
RNS Number : 1876G
easyJet PLC
16 March 2020
16 March 2020
easyJet plc
('easyJet')
EASYJET STATEMENT - COVID-19 UPDATE
Due to the unprecedented level of travel restrictions being
imposed by governments in response to the Coronavirus pandemic and
significantly reduced levels of customer demand, easyJet has
undertaken further significant cancellations. These actions will
continue on a rolling basis for the foreseeable future and could
result in the grounding of the majority of the easyJet fleet.
easyJet will continue to operate rescue flights for short
periods where we can, in order to repatriate customers.
To help mitigate the impact from COVID-19 we are taking every
action to remove cost and non-critical expenditure from the
business at every level. Aircraft groundings will remove
significant levels of variable costs.
easyJet maintains a strong balance sheet including a GBP1.6bn
cash balance, an undrawn $500m Revolving Credit Facility,
unencumbered aircraft worth in excess of GBP4bn and a large and
valuable slot portfolio. easyJet has no debt re-financings due
until 2022 and is in ongoing discussions with liquidity providers
who recognise our strength of balance sheet and business model.
European aviation faces a precarious future and there is no
guarantee that the European airlines, along with all the benefits
it brings for people, the economy and business, will survive what
could be a long-term travel freeze and the risks of a slow
recovery. Whether it does or not will depend significantly on
European airlines maintaining access to liquidity, including that
enabled by governments across Europe.
easyJet continues to work closely with the authorities and is
following the guidelines provided by the World Health Organisation
and EASA to ensure the health and wellbeing of our people and
customers.
Outlook
At this stage, given the level of continued uncertainty, it is
not possible to provide financial guidance for the remainder of the
FY20 financial year.
Johan Lundgren, easyJet CEO said:
"At easyJet we are doing everything in our power to rise to the
challenges of the Coronavirus so that we can continue to provide
the benefits that aviation brings to people, the economy and
business. We continue to operate rescue and repatriation flights to
get people home where we can, so they can be with family and
friends in these difficult times.
"European aviation faces a precarious future and it is clear
that coordinated government backing will be required to ensure the
industry survives and is able to continue to operate when the
crisis is over."
For further details please contact easyJet plc:
Institutional investors and analysts:
Michael Barker Investor Relations +44 (0)7985 890 939
Holly Grainger Investor Relations +44 (0)7583 101 913
Media:
Anna Knowles Corporate Communications +44 (0) 7985 873 313
Edward Simpkins Finsbury +44 (0) 7947 740 551
+44 (0) 207 251 3801
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END
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