EasyJet employs more than 15,000 people in eight countries across Europe (File)
London:
The British easyJet plans to cut up to 4,500 jobs and reduce its fleet to adapt to the smaller travel market that is expected to emerge from the coronavirus crisis.
EasyJet, which employs more than 15,000 people in eight countries across Europe, is moving later than the rest by announcing job cuts in the wake of the coronavirus pandemic, which has brought airlines around the world on your knees.
Most have been forced to cut jobs, including more than 15,000 in Britain, as they prepare for a market that is not expected to return to 2019 levels until 2023.
EasyJet, which announced Thursday that it will launch a staff consultation process, also plans to reduce its fleet by 15% to 302 aircraft by the end of 2021 and cut costs through agreements with airports, maintenance and marketing providers.
EasyJet’s shares rose 6% to 751 pence, their highest level since mid-March, before the coronavirus had immobilized its fleet.
“Exactly the type of cost base needs review,” said Daniel Roeska, analyst at Bernstein, about the cuts to easyJet, which go further than those of Ryanair and Wizz Air, who said they would fire respectively 15% and 19% of the staff.
EasyJet said it plans to fly about 30% of its capacity by the fourth quarter, leaving it behind Ryanair, which plans to fly at 40% in July.
“The leverage to increase market share over the next two years seems to rest on Ryanair and Wizz, who see their cost bases as enabling them to exploit this crisis,” said Goodbody analyst Mark Simpson .
EasyJet chief executive Johan Lundgren said the job cuts would ensure that easyJet becomes “a more competitive business”. Around 8,000 of its employees are based in Great Britain.
Lundgren told reporters that easyJet is discussing with the British government a 14-day quarantine rule which the airlines say will further stifle any resumption of the trip.
In the past six weeks, easyJet has also been struggling with an attempt by its main shareholder to oust its main bosses and the fallout from a cyber attack.
He said talks with lessors interested in acquiring planes on a sale and leaseback basis are underway and that the proceeds would now range from £ 500 million to £ 650 million ($ 798 million). , about 25% more than expected in April.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
