British airline EasyJet has officially announced that the entire company is facing a full-year loss. Earlier, it was expected that the company might be suffering some major financial losses due to the impact it has created over the past couple of months. The company hasn’t operated a single flight for continuous six months which resulted in a major financial loss. EasyJet claims that this is the first entire year loss after 25 years, it looks the company might be even facing some of the major losses in the upcoming months due to the second lockdown that has been getting implemented in some of the European countries. It looks like the rollout of the vaccine might help the international tourism industry from getting back to normal after a long time.
Many nations around the globe have been brutally affected by the corona pandemic which caused major financial tension among the countries. Even though the world bank has come forward in supporting these nations, it still hasn’t shifted the momentum on bringing a positive change in the world economy. Giants in the manufacturing industry have been badly affected by the lockdown which has completely stopped the imports and exports of the product between many countries. It looks like the UK government might extend their support to help the airline company in reviving their financial conditions. It’s clear that the airline is currently in talks with the UK banks looking for support in paying employee’s salaries.
Many companies and huge institutions have already laid off some of their employee which has caused mass unemployment in many parts of the countries. Governments are trying their best to help people from relieving from the financial stress caused by the pandemic. Many countries have announced their memorandum which was framed with a direct motive to support the health, hygiene, and basic amenities for the people. As an initiative measure airline has already reported a pretax loss of 1.27 billion pounds. It was announced that the company as a result for the fiscal year in September as passenger volume who preferred traveling in the airline dropped halved to 48.1 million.
It was reported that their flight flew with only half of the passengers during the starting period of this year which has also added as a negative disadvantage while framing the year’s financial terms. 2020 summer has also been quite hard for traveling for other countries mainly because of the strict conditions imposed by the governments. The airline claims that it operated with 38% of its planned capacity. During 2019, the airline has made 430 million pounds as a profit for the entire full-year period. Johan Lundgren, Chief Executive of EasyJet stated that the companies management is planning “robustly and decisively” and have been looking for the vaccine which is only hoped for the company for returning to their normal operations.
It’s expected that more airline companies around the world will be reporting the negative fiscal year result. Many medical institutes around the world have been continuously working on manufacturing effective medicine to prevent and cure the virus. It’s expected that these medicines might take another couple of months to launch for the practical implementation on the general public.