(RTTNews) - Low-cost airline easyJet Plc (ESYJY.PK, EZJ.L) announced Monday further significant cancellations due to significantly lower customer demand amid the Coronavirus or COVID-19 pandemic.
Due to the unprecedented level of travel restrictions being imposed by governments, the company sees the cancellations will continue on a rolling basis for the foreseeable future that could result in the grounding of the majority of the easyJet fleet.
EasyJet said it will continue to operate rescue flights for short periods, in order to repatriate customers.
According to the firm, aircraft groundings will remove significant levels of variable costs. The company is also taking various actions to remove cost and non-critical expenditure from the business at every level. This would help mitigate the impact from COVID-19.
Regarding the outlook, the company said it is not possible at this stage to provide financial guidance for the remainder of the FY20 financial year due to the continued uncertainty.
Johan Lundgren, easyJet CEO said, "European aviation faces a precarious future and it is clear that coordinated government backing will be required to ensure the industry survives and is able to continue to operate when the crisis is over."
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