EasyJet pilots have been offered alternative contracts. The airline also warns of upcoming cuts.
In Q3 of last year, budget carrier EasyJet served 26.4m fliers and earned £1.76bn as revenue. One year later, the story became entirely different. EasyJet flew just 117,00 passengers and could earn revenue of only £7m as it could not utilise its resources.
The EasyJet (LSE: EZJ) share price has crashed this year. The stock has fallen 65% from its 52-week high of 1,500p witnessed at the end of February.
The coronavirus crisis has hit the airline sector as a storm. Several air carriers were forced to ground their planes as travel restrictions were imposed around the world.
Following the grounding of its fleet, EasyJet had to deal with the nightmare scenario of having no income and persistent expenditures. Additionally, it also has a number of other liabilities.
The dire financial predicament of the discount airline EasyJet has forced the company to consider strange steps for its survival.
EasyJet shall extend its pilots “seasonal” contracts. That is, work for 26 weeks continuously, and do not draw any salary for the rest of the year.
EasyJet has over 2200 pilots. As the global airline companies battle the collapse in the air travel business, EasyJet may terminate a third of its pilot workforce in an attempt to make severe cuts in its expenditures.