Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

EasyJet confirms UK base closures as travel pain continues

Published 08/17/2020, 09:25 AM
Updated 08/17/2020, 09:30 AM
© Reuters. FILE PHOTO: An easyjet Airbus A319 plane at Luton Airport after the coronavirus outbreak

LONDON (Reuters) - British airline easyJet (L:EZJ) confirmed on Monday it would close three of its bases in the United Kingdom resulting in the loss of up to 670 jobs as the coronavirus pandemic continues to squeeze the travel industry.

EasyJet said in May that it would need to axe 4,500 jobs across Europe to prepare for a smaller travel market due to the pandemic, and is starting that contraction by closing bases at London Stansted, London Southend and Newcastle airports.

The outlook for airlines darkened last week after France joined Spain on Britain's quarantine list, deterring travel to the two most popular destinations for Britons and dashing hopes for an August recovery.

EasyJet's bigger rival Ryanair (I:RYA) said on Monday that it would reduce its flight capacity by a further 20% during September and October after a reimposition of travel restrictions led to a notable weakness in forward bookings.

Johan Lundgren, chief executive of easyJet, blamed "the unprecedented impact of the pandemic and related travel restrictions" for the base closures and said in a statement that Britain's quarantine measures were affecting demand.

Up to 670 pilots and crew work at the three bases and many of those will lose their jobs. They will make up some of the 1,900 jobs in Britain that easyJet flagged in May would go as part of the 4,500 European total.

An easyJet spokeswoman said that it was likely that fewer than 1,900 jobs would actually be lost in the UK due to agreements on part time and seasonal contracts, base transfers and unpaid leave. There will also be less compulsory job cuts due to agreements on voluntary redundancy.

© Reuters. FILE PHOTO: An easyjet Airbus A319 plane at Luton Airport after the coronavirus outbreak

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.