Due to COVID-19... UK Low-Cost Airline easyJet Reports First Pre-Tax Loss in 25 Years Since Founding

[Asia Economy Reporter Cho Hyun-ui] EasyJet, the UK's leading low-cost airline, recorded its first annual pre-tax loss in 25 years due to the impact of the novel coronavirus disease (COVID-19).

According to local media on the 17th (local time), EasyJet announced a pre-tax loss of ?1.27 billion (approximately 1.86 trillion KRW) for the year ending last September. During the same period last year, EasyJet posted a pre-tax profit of ?430 million (approximately 630 billion KRW).

EasyJet's first annual loss in 25 years since its founding is due to the impact of COVID-19. The company completely suspended flight operations from the end of March as the virus spread, then resumed with significantly reduced flights from mid-June. The annual number of passengers dropped by about half.

Currently, EasyJet is conducting layoffs of about 4,500 employees, roughly one-third of its total workforce. EasyJet expects that in the first quarter of next year, it will only be able to operate up to 20% of its total flights.

Johan Lundgren, CEO of EasyJet, said, "We will respond flexibly to quickly increase flights once demand recovers." He added, "Last week, we heard the welcome news that vaccinations are imminent, which could enable a strong recovery for the industry."

This content was produced with the assistance of AI translation services.