MIAMI – With a forecasted dry-cold winter schedule, easyJet (U2) has warned the government it may need additional financial support. The airline claims that it will lose hundreds of millions of pounds during the next season.
Despite the government request not being unveiled, a source familiar with the matter said U2 would not need an emergency loan, reported SkyNews. Instead, the company would be taking a “prudent approach” to manage its balance sheet.
The airline already secured a financial facility of £600m. However, it also reported a £325m Q3 pre-tax loss. Due to this, allegations and headlines about the airline “hanging by a thread” came up.
On Wednesday, U2 said in a statement it would continue reviewing its liquidity position and assessing more funding opportunities. Apart from this announcement, a pre-close trading update is expected in the next hours.
Last month, U2 reduced its schedule for Q4 as it expected a low passenger demand. The latter comes as a result of imposed mandatory quarantine to travel and the absence of the COVID-19 testing scheme at UK airports.
Accordingly, U2 and other airlines urged the government to implement a testing framework. This week, Uk Ministers said that an airport testing announcement would come in the upcoming days.
During the pandemic, the carrier has obtained £400m from shareholders. The reached amount includes sums that originate from actions related to the placing, selling, and leasing back of U2’s fleet.
Featured photo: easyJet procession. Photo: easyJet.