EasyJet has not ruled out seeking further state support despite airline chief Johan Lundgren insisting the carrier has enough cash to remain on the ground without revenue for nine months.
The easyJet chief executive said: “We are engaging actively with governments in all the markets in which we operate.”
Lundgren dismissed talk of airline consolidation at this stage of the coronavirus crisis, saying: “I’m not spending a lot of time speculating.”
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Speaking on a half-year results call on Thursday, Lundgren said: “The corona crisis is primarily a public health issue. We simply can’t operate because of the travel restrictions.
“Aviation is one of the most-impacted industries and in that context governments need to provide a support mechanism.”
He noted: “We welcome the general schemes [of aid offered by governments]. These options are available for most industries. We are not asking for any bespoke schemes.
“But if this goes on for an extended period, no one in the industry will survive without some sort of support.”
Lundgren insisted: “This is about the survival of the industry. It is about making sure the industry as we know it will be here when the restrictions are lifted.
“We need to ensure the industry is not crippled and can invest going forward.”
EasyJet announced agreement on two new loans worth £400 million today, taking its total cash balance to £3.3 billion, giving “sufficient reserves to remain liquid during a ninth-month grounding” while “revenue remains minimal”.
Lundgren said: “We have to assume this will last a long time. We don’t know when flying will resume. If this goes on longer than nine months we will explore further access to liquidity.
“It’s about making sure the industry survives and that when we come out of this the whole industry is not crippled.”
However, Lundgren argued: “We came into this crisis with one of the best credit ratings in aviation and one of the strongest balance sheets in Europe.”
“Of course, if you come into this weak you are going to need some restructuring to get through.
“[But] everyone is focused on sorting out themselves and then seeing what shape companies are in. We’re focused on managing our own destiny.
“We don’t plan that the competitive landscape will be more favourable. That would be a mistake.
“We assume competitors will still be around. But we know we came into this as one of the stronger players.”
Lundgren dismissed a suggestion that easyJet might need to merge with another carrier to survive the grounding and its aftermath. He said: “We are one of Europe’s largest airlines.”