Home / Sportscope / Coronavirus: EasyJet shares soar despite warning losses could hit £380m

Coronavirus: EasyJet shares soar despite warning losses could hit £380m

Easyjet airline airplanes are seen parked, as Schiphol Airport reduces its flights due to the coronavirus disease (COVID-19) outbreak, in Amsterdam, Netherlands April 2, 2020. REUTERS/Piroschka van de WouwEasyjet airline airplanes are seen parked, as Schiphol Airport reduces its flights due to the coronavirus disease (COVID-19) outbreak, in Amsterdam, Netherlands April 2, 2020. REUTERS/Piroschka van de Wouw
EasyJet appears confident of survival even under a long grounding. (REUTERS/Piroschka van de Wouw)

EasyJet (EZJ.L) shares soared on Thursday as it struck a confident note about its survival even if the coronavirus causes a “lengthy fleet grounding.”

Investors welcomed what EasyJet called “decisive cost actions” designed to shore up its finances, despite it also revealing it expected significant losses in the six months to 31 March.

Shares were trading 6.5% higher at around 9.30am in London.

The budget carrier expects to report pre-tax losses of up to £380m ($475m), including a hit of up to £185m ($231m) from over-hedging fuel and foreign currencies.

Its half-year revenue rose by 1.6% however to £2.4bn.

READ MORE: UK firms could furlough up to 11 million workers

“EasyJet has sufficient liquidity to endure a lengthy fleet grounding,” it said in a trading update on Thursday.

It said it had cut costs, deferred purchasing of 24 new Airbus planes and raised new finance, with almost £2bn in extra cash funding.

The majority of staff have been furloughed for April and May, with the company access government support schemes in several countries.

The company also said more than half of passengers who faced disruption had chosen vouchers or alternative flights rather than sought refunds. Winter bookings are higher than last year.

The trading update said there could be “no certainty” about when commercial flights would restart.

Credit belongs to : https://sports.yahoo.com

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