EasyJet swings to £1.27 billion of pre-tax loss in fiscal 2020
- EasyJet swings to £1.27 billion of pre-tax loss in fiscal 2020.
- The air carrier values non-headline costs at £438 million.
- EasyJet says passenger numbers slipped by 50% to 48.1 million.
In a report on Tuesday, EasyJet plc (LON: EZJ) said it concluded fiscal 2020 with a loss attributed to a sharp decline in revenue due to the ongoing Coronavirus pandemic. The company also suspended its annual dividend on Tuesday.
EasyJet shares tanked close to 6% on market open on Tuesday. The low-cost air carrier is now exchanging hands at £7.60 per share after recovering from a low of £4.75 per share in the first week of April due to the COVID-19 restrictions. In comparison, EasyJet had a per-share price of £14.30 at the start of the year.
EasyJet values non-headline costs at £438 million
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In the year to September 30th, EasyJet reported £1.27 billion of pre-tax loss versus £430 million of profit in fiscal 2019. According to FactSet, experts had forecast a lower £1.16 billion of loss for the budget airline in fiscal 2020.
EasyJet valued non-headline costs at £438 million this year as compared to £438 million last year. The airline closed three of its UK bases in August as COVID-19 continued to wreak havoc on global demand for air travel.
On an adjusted basis, the British multinational reported £835 million of annual pre-tax loss versus £822.3 million expected. In comparison, it had posted £427 million of adjusted pre-tax profit last year.
EasyJet said that its revenue slid to £3.01 billion in the recent year versus a much higher £6.39 billion in fiscal 2019. The air carrier’s annual revenue was in line with the FactSet Consensus. At £54.35, total revenue per seat, EasyJet added, posted a 10% decline.
EasyJet says passenger numbers slipped by 50% to 48.1 million
The low-cost airline also said on Tuesday that total passenger numbers slipped by 50% to 48.1 million. At 87.2%, load factor saw a 4.3 percentage points decline in the recent year. For Q1 of fiscal 2021, EasyJet forecasts its capacity to remain at least 80% lower than planned.
EasyJet slashed more flights and sold planes last week after new restrictions from the government due to the COVID-19 crisis. The London-headquartered air carrier refrained from giving any further guidance for the current fiscal year.
EasyJet performed fairly upbeat in the stock market last year with an annual gain of more than 25%. At the time of writing, it is valued at £3.41 billion and has a price to earnings ratio of 12.58.