easyJet proposes axing 4,500 jobs across Europe

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

easyJet has announced that it wants to reduce its workforce by up to 30% as a result of coronavirus.

It joins British Airways, Virgin Atlantic and low-cost peer Ryanair in making significant reductions to its workforce. If the BA, Virgin and Ryanair redundancies go ahead as planned over 18,000 jobs will be affected.

easyjet to make 4500 redundancies

easyJet employs over 15,000 staff across Europe.  With 30% of staff at risk, it appears to be making deeper cuts than both Ryanair and Wizz Air, which announced redundancies of 15% and 19% respectively.  30% is, however, on par with what British Airways and Virgin Atlantic are planning.

Some feel that easyJet is cutting too hard.  When you are firing twice as many people as Ryanair, which never saw a cost it couldn’t cut and then cut again, something feels odd.  The cuts are also far larger than the projected shrinkage of the fleet, which only involves easyJet reducing its size by 50 aircraft – around 15% – over two years.

The airline is also in discussion with various aircraft lessors on a sale-and-leaseback arrangement, in which easyJet would release money currently tied up in its fleet.  This would generate between £500 million and £600 million in cashflow.  The airline has also made use of the UK Government’s Covid Corporate Financing Facility to borrow £600 million.

In total, once all funding initiatives are complete, the airline expects to have around £2 billion in total liquidity.

Whilst the easyJet fleet is currently grounded, the airline has said that it intends to restart flying from 15th June, starting with selected domestic UK and French routes. easyJet chief executive Johan Lundgren said

“we expect demand to build slowly, only returning to 2019 levels in about three years’ time.”

It expects to fly around 30% of capacity in July, August and September.  He continued:

“Further routes will be announced as customer demand increases and government restrictions across Europe are relaxed. So far, the booking trends on the resumed flights have been encouraging, and the demand indications for summer 2020 are improving, albeit from a low base.”

Bookings for the Winter period are well ahead of where they would otherwise be at this time of year, although this is partially due to customers who have rebooked cancelled flights.  easyJet also ran an incredibly generous deal a few weeks ago offering all seats, irrespective of date, at £29.99 or less.

BIG NEWS: IHG Rewards Club launches revenue-based redemptions in Europe and US - and it is MUCH cheaper
Your cut-out-and-keep guide to the Marriott Bonvoy free breakfast benefit

Click here to join the 15,000 people on our email list and receive the latest Avios, miles and points news by 6am.

Amazon ad
EXCLUSIVE HFP READER OFFER FOR SME's!
Get points worth 15,000 Avios as a sign-up bonus!
OFFER ENDS 13th JULY
15,000 Avios with Capital on Tap Mastercard
About Head for Points

We help business and leisure travellers maximise their Avios, frequent flyer miles and hotel loyalty points. Visit every day for three new articles or sign up for our FREE emails via this page or the box to your right.

Comments

  1. Dubious says:

    ‘When you are firing twice as many people as Ryanair, which never saw a cost it couldn’t cut and then cut again, something feels odd’…maybe RyanAir’s loss of Peter Bellew was EasyJet’s gain?

  2. ‘When you are firing twice as many people as Ryanair, which never saw a cost it couldn’t cut and then cut again, something feels odd’ Maybe its because Ryanair started from a lower level already. Ryanair was already at the lowest it could get away with level of crew to routes whereas Easyjet were not but now plan on joining Ryanair at that level.

  3. Harry H says:

    All of the airlines must think they will be able to recruit easily once demand starts to return to pre-Covid levels. It is going to be like the football manager merry-go-round where managers are never out of work for long, they just drift from club to club. 18,000 cabin crew looking for work will be a large pool of trained staff to recruit from.

    The danger is that they go for a career change and start to enjoy it.

    • Way things are going they will be lucky to get any sort of job as the restaurant and bar trade going to be decimated.

    • Lady London says:

      Yup. Constant stream of bright eyed young people wanting to ‘see the world’ on a pittance. With the UK’s survival strategy to be a cheap, safe home for capitalists with a large pool of docile English speaking labour who could blame them. McDonald’s, BA, Easyjetor even Ryanair? Who can blame them.

      When their desires change to consider mortgages and children, or when they are just forced out by the cost of living there’s a constant stream of labour available to take theie place.

      So customers, not of course the.audience here, get a constant stream of willing totty to wait on them (this matters to more business flyers than admit it based on comments that pop up on other sites). A revolving door, which is just what capitalists and their customers want. Conditions will only improve for staff if the birth rate drops to zero or if legislation requires. And there won’t be legislation given the UK’s industrial strategy and what implies for workers.

      Did you know that when cabin crew were first created, female cabin crew were required to leave the job when they reached a certain age (which I think was 28) or as soon as they got married? I think BA might have had a small cash sum that was called a ‘dowry’ that was paid to an air hostess when she was forced to leave because she married. I think it took union action to overturn this.

  4. Their planes are flying in very odd ways https://twitter.com/win_and_fly/status/1266384596775702528?s=21

    • Rui N. says:

      Those short flights are to avoid sending the airplanes to long term storage. Ryanair is doing the same, they didn’t store their airplanes, so they have to fly every now and then.

  5. insider says:

    5 comments – you can see the readership of this site!

    • Peter K says:

      I had a similar thought just now when I saw 6 comments.

      • It’s better to have this than 150 comments most of which are nonsense…

        • marcw says:

          Or people always asking the same question. I used to read the comments in the “old” bits article, because some of the comments were actually related to the topic. Now with the chat section, tbh, I can´t be bothered to read about 241, refunds or Revolut/the other card, so I just tend to ignore completely that section.

    • Mr(s) Entitled says:

      Airline makes large scale redundancy. Thoughts with those impacted but what else is there to say? Strip out all the nonsense about Willie Walsh and ‘never flying BA again’ while still flying BA and I suspect you would find only a dozen comments of worth.

      • Lady London says:

        +1 i get really tired of people swearing they are so annoyed at BA’s latest changw tbey will :never set foot on a BA plane again’ and there they do all are next year flying BA.

  6. Drake says:

    No need to go to an air show this year. They will be flying every airplane they have got empty or not to convince us that others are flying and having a good time.

Please click here to read our data protection policy before submitting your comment.