Fears are rising on Spain’s Costa del Sol and Costa Blanca that the airline carrier easyJet is set to go bust after latest figures reveal turnover was £104 million for this time last year and has been a shocking £7 million so far this year.
THE popular airline for Spain’s Malaga and Alicante airport users especially is under severe financial pressures due to the Coronavirus pandemic as its share price drops 65 per cent and the company prepare to close Newcastle, Stansted and Southend operations according to reports.
Nearly 1,300 of its UK crew members and 727 UK-based pilots are reportedly at risk of redundancy and the airline warned back in May that up to 30 per cent of its 15,000 strong workforce could be cut as it grapples with the fallout from the pandemic.
The latest figures are though despite a rallying call from the company’s CEO, causing ex-pats great concern that the airline will fold.
Whilst CEO Johan Lundgren said: “I am really encouraged that we have seen higher than expected levels of demand with a load factor of 84 per cent in July with destinations like Faro and Nice remaining popular with customers.
“Our bookings for the remainder of the summer are performing better than expected and as a result, we have decided to expand our schedule over the fourth quarter to fly 40 per cent of capacity. This increased flying will allow us to connect even more customers to family or friends and to take the breaks they have worked hard for.”
Although frequent fliers back and forth from Spain fear the worst as millionaire financial analyst businessman Gregg Maunder from Marbella said:
“Despite the rallying call from the CEO, I just can’t see the airline lasting, you can make all the cutbacks you want but the figures for £104 million to just £7 million turnover just isn’t sustainable in my opinion, my feeling it’s only a matter of time, it’s a shame as I use the airline most weeks, but the current market conditions are working against them heavily, we’ve heard stark warnings too from founder Stelios and he’s a very shrewd man.”
Another regular user, Dawn Watkins-Palmer who flies weekly to her London offices in Canary Wharf told how she fears if the airline goes bust how prices will rise heavily to her weekly commute:
“That’s one hell of a fall in numbers, I wasn’t expecting it to be that big, it’s a great airline and I really hope it survives, realistically I can’t see it and if it does go it will be a big loss to expats across Spain and will no doubt see surviving airlines up prices,” she said.