EZJ.L - easyJet plc

LSE - LSE Delayed price. Currency in GBp
-60.00 (-8.11%)
At close: 4:38PM BST
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Previous close740.00
Bid692.20 x 0
Ask692.40 x 0
Day's range680.00 - 733.60
52-week range410.00 - 1,570.00
Avg. volume5,249,466
Market cap2.7B
Beta (5Y monthly)1.62
PE ratio (TTM)7.74
EPS (TTM)87.80
Earnings date30 Jun 2020
Forward dividend & yield0.44 (5.93%)
Ex-dividend date27 Feb 2020
1y target est1,479.74
  • Financial Times

    Summer travel clinic: readers’ questions answered

    Q: Can one fly through London Heathrow from the US to other European destinations without being subject to quarantine? A: To the dismay of many in the British travel industry, as of June 8 visitors and residents arriving into the UK will have to self-isolate in one location for 14 days. Also among those exempt are those coming from Ireland, the Channel Islands and the Isle of Man, air crew, staff on the Eurostar and Eurotunnel, lorry drivers, diplomats and any UK resident who usually commutes to a job abroad at least once a week.

  • EasyJet cuts jobs; Norwegian Air losses deepen
    Reuters Videos

    EasyJet cuts jobs; Norwegian Air losses deepen

    More job losses Thursday (May 28) at European airlines. UK budget carrier easyJet says it will cut about 30% of its staff. That’s 4,500 posts. The airline had held out longer than local peers. Between them, Ryanair, British Airways and Virgin Atlantic have already announced 18,000 job cuts. Now easyJet says it too has to prepare for a shrunken air travel market. It’s also going to reduce its fleet, and is in talks with airports over cheaper deals. The CEO has warned that some bases could be closed. Investors welcome the moves, with easyJet shares up over 6% in early trade Thursday. Meanwhile Norwegian Air says its first-quarter loss widened to 332 million dollars. The news comes just days after the carrier completed a financial rescue that saw its creditors take control. Around 90% of its staff have been furloughed since March. A recovery plan published the following month sees it operating just seven planes for up to a year. It will then gradually build up to 120 aircraft by 2022.

  • Financial Times

    EasyJet to cut 4,500 jobs and reduce capacity

    EasyJet plans to cut up to 30 per cent of its 15,000-strong workforce as it becomes the latest airline to warn that the aviation industry faces a slow recovery from the upheaval wrought by coronavirus. EasyJet on Thursday also laid out plans to fly about 30 per cent of its normal capacity across July, August and September, which means taking a more cautious approach than budget rivals Ryanair and Wizz Air. Ryanair this month confirmed plans to resume flights in July at about 40 per cent of capacity, before ramping it up to about 60 to 70 per cent by September.

  • Financial Times

    City Bulletin: EasyJet announces plans to axe up to 30% of staff

    EasyJet is the latest airline joining the queue to cut jobs. Following similar announcements by Ryanair and British Airways, the low-cost airline on Thursday said it would shortly launch a consultation to reduce staff numbers by up to 30 per cent. Last year it employed 15,000 people. EasyJet said on Thursday that, in line with projections from the International Air Transport Association (Iata), it didn’t expect 2019 levels of demand to return until 2023 and would operate a smaller fleet to reflect that.

  • Financial Times

    EasyJet CFO announces departure days after surviving bid to oust him

    EasyJet’s chief financial officer has announced plans to leave the low-cost airline next year, just days after he survived an attempt to oust him by its founder and biggest shareholder Stelios Haji-Ioannou. The budget carrier on Tuesday said Andrew Findlay, who joined easyJet in 2015 from Halfords, will leave in May 2021 after working out his 12-month notice period. It comes just days after Mr Findlay was one of four easyJet directors, including chief executive Johan Lundgren, to win backing from investors after an attempt by Sir Stelios to have them dismissed as part of his fight to get a multibillion Airbus aircraft order scrapped.

  • Financial Times

    EasyJet founder Stelios loses bid to oust 4 directors

    EasyJet founder Stelios Haji-Ioannou has lost his attempt to oust four directors, including the airline’s chairman and chief executive, following an investor vote on Friday. Sir Stelios, the low-cost airline’s biggest shareholder, was dealt the blow after investors voted against each of the four resolutions at a virtual extraordinary general meeting. Following the defeat, John Barton, chairman of easyJet, thanked shareholders for their support and said the board hoped “to be able to re-engage constructively with Sir Stelios”.

  • Bloomberg

    EasyJet’s Future Hangs on Founder’s Bid to Dismiss Leadership

    (Bloomberg) -- EasyJet Plc’s future will be decided in a single vote on Friday, with billions of dollars of aircraft orders at stake.Top shareholder Stelios Haji-Ioannou has called for the ouster of the U.K. airline’s leadership in the middle of the coronavirus crisis. EasyJet’s founder and former chairman has spent more than 15 years opposing the plans of successive managers on the grounds that they’ve been too investment-intensive and offered insufficient returns.Haji-Ioannou’s latest campaign comes to a head at an extraordinary general meeting when investors vote on his motion to remove four directors, including Chief Executive Officer Johan Lundgren, Chairman John Barton and Chief Financial Officer Andrew Findlay.The clash centers on an order for more than 100 Airbus SE A320neo jets that make up the bulk of 4.6 billion pounds ($5.6 billion) in capital spending planned through fiscal 2023. Haji-Ioannou says the purchase will drain cash as the air-transport industry faces years of subdued demand in the aftermath of the coronavirus crisis. EasyJet says it’s revised the order and that the debate creates an unnecessary distraction at a tough time.“It’s a really important moment for the airline,” said Luke Hickmore, a fund manager with Aberdeen Standard Investments who manages around $3 billion for his firm. “He wins and the board becomes his to control and leads to a slashing of aircraft orders. At the moment that’s no bad thing, but how do you grow back any time soon?”EasyJet traded 1.4% lower as of 8:08 a.m. in London, taking the stock’s decline this year to 60%. The EGM is scheduled to start at 10 a.m. in the U.K. capital.CEO Lundgren has deferred the delivery of 24 planes to an undetermined date. He says EasyJet must be ready to renew its fleet when traffic finally rebounds and that the terms of the Airbus deal are uniquely flexible.The airline says it’s reduced its near-term capital expenditures by more than 1 billion pounds, though it has yet to announce job cuts of a level announced by peers. British Airways planning to cut 12,000 posts and Ryanair Holdings Plc and Virgin Atlantic Airlines Ltd. 3,000 apiece.Haji-Ioannou, 53, wants EasyJet’s existing fleet cut to 250 aircraft from 318. He has generally failed to attract broad shareholder support in previous battles with management, which have included clashes over pay and the Easy name.Attritional AttacksYet the attritional nature of his attacks has borne fruit. Barton’s predecessor as chairman, Mike Rake, announced his departure in 2013 less than six months after surviving a dismissal vote. EasyJet also pays out a higher-than-average 95% of its free cash flow, according to Citigroup analyst Mark Manduca.What’s different this time around is that rather than riding the crest of a decades-long surge in air travel, Haji-Ioannou’s call for a clampdown on spending comes with the industry mired in the deepest crisis in its history -- something that could turn more shareholders to his way of thinking. A decline of two-thirds in EasyJet’s share price will also focus minds, Manduca said.A defeat for Lundgren, a Swede who took over in December 2017 and is the same age as Haji-Ioannou, would still come as a surprise.The founder and his family collectively own about 34% of EasyJet, whereas the Luton, England-based company reckons it could have the backing of shareholders controlling 45% of votes, the Sunday Telegraph reported, citing an interview with Lundgren.A spokesman for Haji-Ioannou said they believe the vote will be very close and that many small shareholders have pledged support for their position. The vote is not a distraction but “a reaffirmation of shareholder democracy” that puts the interest of those risking their capital above “here today gone tomorrow” management, the spokesman said.Invesco, Ninety One U.K. and Phoenix Asset Management, the three biggest investors after the founder with a holding totaling of about 15%, have publicly pledged their support to management.Shareholder advisory firms Institutional Shareholder Services, Glass Lewis and Pensions & Investment Research Consultants have also recommended that people vote against Haji-Ioannou’s resolutions.‘Scoundrels’ JibeIn the last few weeks, the Greek-Cypriot entrepreneur has stepped up his campaign by questioning the nature of EasyJet’s relationship with Airbus in light of the manufacturer’s settlement earlier this year of a corruption case concerning aircraft sales. Haji-Ioannou has referred to the board and management as “scoundrels.”He’s also condemned other investors for failing to call EasyJet to account, said Britain’s Financial Conduct Authority should face a judicial review over a lack of action, and offered a 5 million-pound reward for evidence of wrongdoing that leads to the cancellation of the Airbus order.At the shareholder meeting, Haji-Ioannou plans to present questions including whether Airbus controls any EasyJet shares and if the carrier meets standards of a “going concern,” according to a statement from his EasyGroup business.Should he win the vote, EasyJet will be plunged into turmoil at the toughest moment in its 25-year history as European airlines haemorrhage an estimated $89 billion in revenue this year due to the pandemic, with the entrepreneur planning to call on Chief Operating Officer Peter Bellew to scrap the plane deal before the appointment of a new chief.EasyJet, which this week revealed that email addresses and travel data of 9 million customers were taken in a cyber attack, has said it plans to resume flights from 22 European airports on June 15, becoming one of the first airlines in the region to begin building up services as the coronavirus lockdown eases.Even if the motions fail, it’s hard to see Haji-Ioannou giving management much respite given heightened concerns about costs and cash flow in the post-virus era.“It will be helpful if it’s nice and clear cut,” said Andrew Lobbenberg, an analyst at HSBC. “He’s clearly on a mission here.”(Updates with shares in sixth paragraph, jobs situation, questions to be asked at EGM and cyber attack from eighth)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Cases Rise 1.5%; Americans Defer Medical Care: Virus Update

    U.S. Cases Rise 1.5%; Americans Defer Medical Care: Virus Update

    (Bloomberg) -- A third of U.S. adults, about 94 million people, have delayed or avoided getting medical care during the outbreak, the Census Bureau estimates. A report from a London college estimates 4.1% of the U.S. population is infected.The Treasury secretary signaled a need for more U.S. economic stimulus. Major job losses mounted as more than 2 million Americans applied for unemployment benefits last week. The FDA put out a list of 27 antibody tests that can no longer be sold in the U.S. for lack of proper vetting.President Donald Trump toured a Ford factory that was converted to make ventilators without a mask, though he had one with the presidential seal on it that he said he’d worn on another part of the tour. New York canceled in-class summer school. Starbucks is seeing a rebound in sales at coffee shops. Facebook lets some employees work from home permanently.Key Developments:Virus Tracker: Cases top 5 million; deaths exceed 331,000Why a new cluster in China is triggering alarms: QuickTakeFuror over mask requirements mirrors retail’s gun rulesWHO caught in a dangerous place between Trump and ChinaWorld Bank’s new economist draws curtain on globalizationFleeing New Yorkers hunt for million-dollar suburban homesTrump gambles on a resurrection, with lives and livelihoodsSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus. See this week’s top stories from QuickTake here.U.S. Flags to Fly Half-Mast (6:59 a.m. HK)President Donald Trump ordered flags on federal buildings and monuments to fly at half-mast for three days in memory of Americans who have died from the virus. The U.S. death toll reached 94,566 late Thursday.Earlier in the day, House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer wrote to Trump, asking “that you order flags to be flown at half staff on all public buildings in our country on the sad day of reckoning when we reach 100,000 deaths.”NY Transit Seeks Fed Aid (5:25 p.m. NY)The nation’s largest transit system, New York’s Metropolitan Transportation Authority, is asking the U.S. Federal Reserve to let it borrow directly from a new $500 billion lending program. While the MTA has twice this month sold long-term debt, the pandemic has challenged its ability to borrow in the short term, Pat Foye, chief executive officer, said in a letter to Fed Chairman Jerome Powell.“Investors have shown confidence in MTA’s long-term prospects but remain concerned about near-term risks,” Foye wrote. The MTA estimates its deficit for 2020 may be as much as $8.5 billion. It’s seeking $3.9 billion of federal funds to help cover lost revenue.CDC to Guide on Opening Churches, Trump Says (5:15 p.m. NY)The U.S. Centers for Disease Control and Prevention plans to put out guidance for reopening churches “very soon,” President Donald Trump said while touring a Ford Motor Co. plant in Michigan. “We want to get our churches back,” he said, suggesting it could come as soon as Thursday.Recommendations for restarting activities by religious organizations weren’t part of CDC suggestions for opening workplaces, schools and restaurants released over the weekend. The White House and CDC have clashed over providing guidance to religious groups because the Trump administration didn’t want to restrict them, the Washington Post reported on Thursday.Texas Lifts Air Travel Restrictions (5 p.m. NY)Texas Governor Greg Abbott terminated a mandatory 14-day self-isolation order for incoming airline travelers. The executive order scraps restrictions issued in April mandating self-isolation for those arriving from California, Connecticut, New York, New Jersey, Washington state, Atlanta, Chicago, Detroit and Miami.The new directive is part of Abbott’s plan to reopen the economy as it enters a new phase of reopening that will allow restaurants to operate at 50% capacity and reopening of bars at 25% capacity, beginning Friday.Cases rose 1.8% to 52,268, below the seven-day average of 2.8%, according to Texas health department data. Hospitalizations dropped 6.2% to 1,680, with more than 6,000 ventilators available in reserve.Abbott Defends Test Accuracy (4:45 p.m. NY)Abbott Laboratories said an ongoing study showed that its ID NOW Covid-19 test had a high rate of accuracy, as the company attempts to counter a claim by outside doctors that the test may return too many false negatives.Partial data from the company-funded study showed that it accurately detected the virus 94.7% of the time, and correctly gave negative results 98.6% of the time, Abbott said in a statement. The study, which is ongoing, analyzed samples from 256 patients and compared the results to a test developed by the U.S. Centers for Disease Control.FDA Says 27 Antibody Tests Barred (4:20 p.m. NY)The US Food and Drug Administration said on Thursday that 27 antibody tests will no longer be distributed in the U.S., part of a previously-announced crackdown on the tests.Antibody tests look for markers in the blood that indicate exposure to the novel coronavirus. However unlike diagnostic tests, they can’t determine whether a patient has an active Covid-19 infection. The FDA’s previous policy allowed hundreds of antibody tests to be sold without its oversight, prompting criticism of the tests’ accuracy.The 27 tests either had “significant problems” identified with them or their manufacturer didn’t seek authorization, according to the FDA. Nine antibody tests were voluntarily withdrawn, including one from BioMedomics, Inc., the FDA said. It also said that there will likely be updates to the list with more tests being barred.In a statement, FDA Commissioner Stephen Hahn called it an important step “taken to ensure that Americans have access to trustworthy tests.”U.S. Cases Rise 1.5% (4 p.m. NY)Coronavirus cases in the U.S. increased 1.5% as compared with the same time yesterday to 1.56 million, according to data collected by Johns Hopkins University and Bloomberg News. That’s higher than Wednesday’s growth rate of 1.3% and in line with the 1.6% average over the past seven days. Deaths rose 1.3% to 93,863.New York cases rose 0.6% to 356,458, in line with the average increase over the past seven days, according to data from the state’s health department.Florida reported 48,675 cases, up 2.5% from a day earlier, the biggest daily increase since at least May 4, when Governor Ron DeSantis started reopening the state. Deaths reached 2,144, an increase of 2.3%.California cases rose 2.5% to 86,197 while deaths increased 3.1% to 3,542, according to the state’s website.UN Pushes to Reopen NYC Headquarters (2:10 p.m. NY)Germany and Russia urged the United Nations to partially reopen its New York City headquarters as the secretary general proposes to scale back the annual General Assembly meeting in September.Germany, which will hold the presidency of the UN Security Council in July, wants to “discuss a possible return to real meetings” while reducing staff on hand and sticking to social-distancing guidelines, Ambassador Christoph Heusgen wrote in a letter to Secretary-General Antonio Guterres seen by Bloomberg News.Guterres has taken a cautious approach to reopening the headquarters tower along the East River.Report Says 4.1% of U.S. Infected (2:06 p.m. NY)A new report from the Imperial College London estimates that 4.1% of the U.S. has been infected by the novel coronavirus, with a wide variation between states. In New York, the world’s epicenter, the researchers estimate that 16.6% of the population has already been infected.The researchers conducted their first state-by-state analysis of the U.S., modeling the number of people infected, the number of those who are currently infectious and the average number of secondary infections caused by individuals with Covid-19. The report warns that certain regions, such as the South and Midwest, may be more susceptible to a resurgence of transmission in coming months.“The epidemic is not under control in much of the U.S.,” say the researchers. “We find no evidence that any state is approaching herd immunity or that its epidemic is close to over.”Puerto Rico Lifting Limits (1:40 p.m. NY)Puerto Rico Governor Wanda Vazquez said she’s reopening many sectors of the economy starting next week, provided establishments follow certain restrictions. Barber shops, salons and malls can also reopen. Vazquez is maintaining a 7 p.m. curfew through June 15, but there are exceptions for restaurants that provide delivery services. The island shut all non-essential businesses, banned public gatherings and declared a nighttime curfew on March 16.Facebook to Push Remote Hiring (1:25 p.m. NY)Facebook Inc., which closed its headquaters in March as the outbreak spread, plans to hire workers in areas where it lacks an office, and will let some current employees work from home permanently.Chief Executive Officer Mark Zuckerberg said Facebook will “aggressively open up remote hiring,” particularly for engineers. Remote workers could be as much as 50% of Facebook’s workforce in the next five to 10 years, he said.Facebook closed its Menlo Park, California, offices more than two months ago and let employees work from home through the end of 2020.Business Lobby Backs State Aid (1:20 p.m. NY)The powerful U.S. Chamber of Commerce business lobby is backing some aid to state and local governments to ease economic devastation from the pandemic.The call by the group typically allied with Republicans contrasts with resistance from GOP lawmakers, who fear more aid could delay reopenings. They want to wait to see how governments use the funds already appropriated.Neil Bradley, the group’s chief policy officer, said a case can be made for assistance, but he pushed back on Democratic plans to give state and local governments more than $1 trillion.N.Y. Drops In-Class Summer School (1:15 p.m. NY)New York Governor Andrew Cuomo canceled in-class summer school amid concerns about the rising number of children with a coronavirus-related illness.State officials also are re-examining whether to open day camps this summer in light of the inflammatory disease that’s thought to be related to Covid-19, Cuomo said at his daily briefing. New York is investigating 157 cases of the illness, Cuomo said.It’s “still too early” to make a determination on whether schools and colleges will be able to open for in-person classes in September, Cuomo said. The state will issue guidance for schools in June.China Rejects Paying Virus Damages (1 p.m. NY)China will never pay legal demands tied to the pandemic, the National People’s Congress spokesman Zhang Yesui said in Beijing when asked about proposed U.S. bills to seek compensation. Accusations against China are “groundless” and violate laws and principles of international relations, he said.Republican Senators Martha McSally of Arizona and Marsha Blackburn of Tennessee last month introduced a bill that would let Americans sue China in U.S. courts for compensation tied to the outbreak. The bill is in committee.U.K. Buys Roche, Abbott Antibody Tests (12:30 p.m. NY)The U.K. will buy 10 million antibody tests from Roche Holding AG and Abbott Laboratories in a boost for Prime Minister Boris Johnson as he tries to ease Britain back to normality.The tests will be “crucial” to aid understanding of the spread of the disease, Health Secretary Matt Hancock said at a press conference. Tests will be rolled out in a “phased way” next week, he said.He said a government survey found 17% of people in London had coronavirus antibodies, along with 5% of people elsewhere in the country. Roche’s test, cleared by a U.K. health authority this month, had previously won praise in Germany and the U.S. for its reliability.Italy Reports 662 New Cases (12:15 p.m. NY)Italy reported the fewest new cases in three days, as the government prepares to start free serological tests on 150,000 volunteers from May 25 before further easing a national lockdown. Civil protection authorities reported 642 cases Thursday, compared with 665 a day earlier. Total cases reched 228,006. Fatalities fell to 156 from 161 on Wednesday, and now total 32,486.Staten Island Ferry Service Expands (11:51 a.m. NY)New York City will increase Staten Island Ferry rush-hour service with boats every 30 minutes each way instead of one per hour as ridership increases, Mayor Bill de Blasio said. The added service will run between 5 a.m. and 9 a.m., and from 3:30 p.m. to 7:30 p.m.Service between Staten Island and Manhattan plummeted 90% in mid-March when the Covid-19 outbreak forced a statewide lockdown of non-essential businesses. Recently boats have carried 600 commuters, compared with 400 to 500 during the pandemic’s peak, the mayor said during a Thursday news briefing. Added service will allow for people to keep safe distances from each other, de Blasio said.Mnuchin Signals Need for More Stimulus (11:50 a.m. NY)Treasury Secretary Steven Mnuchin said there is a “strong likelihood” Congress will need to pass more stimulus legislation as the nation struggles to recover from the outbreak but that such assistance isn’t immediately needed.“We’re going to step back for a few weeks and think very carefully if we need to spend more money and how we’re going to do that,” he said at an online event hosted by The Hill newspaper. He said he had spoken to House Speaker Nancy Pelosi last week about next steps on stimulus.Republicans who lead the Senate have so far rejected acting on the Democrats’ $3 trillion relief package that passed the House on a party-line vote last week.Florida Sees Biggest Uptick Since Reopening (11:45 a.m. NY)Florida reported 48,675 Covid-19 cases on Thursday, up 2.5% from a day earlier, the biggest daily increase since at least May 4, when Governor Ron DeSantis started reopening the state. That compared with an average increase of 1.6% in the previous seven days. Deaths among Florida residents reached 2,144, an increase of 2.3%.U.S. Census: Millions Put Off Medical Care (11:27 a.m. NY)More than 76 million American adults didn’t get needed medical care for conditions unrelated to Covid-19 in the past month, new U.S. Census data show. The estimate from the new Household Pulse Survey is the clearest picture yet of how pandemic-related shutdowns led to a staggering drop in people seeking medical care, cratering revenue for doctors and hospitals. Almost 94 million adults, more than one-third of the adult population, delayed care during the pandemic, the Census estimates.The survey also found high rates of mental-health problems. About 116 million Americans reported feelings of being down, depressed or hopeless on at least some days of the week prior to the survey. About 147 million, or more than 40% of the population, reported symptoms of anxiety. Health experts and medical providers are increasingly concerned about the long-term consequences of the shutdowns.Tanzania Adopts ‘Herd Immunity’ (10:45 a.m. NY)Tanzanian President John Magufuli ordered a phased reopening of schools and resumption of foreign tourist flights starting next week, touting the “herd immunity” strategy that has been rejected by other nations. Sporting events can restart in June.“If you lock people inside, their immunity falls by 30%, according to the literature that I have seen,” Magufuli, an opponent of lockdowns, said in a televised speech, flanked my government officials without face coverings. The strategy allows for more than 60% of the population to gain some resistance to the virus by becoming infected, then recovering. The government also scrapped plans to build a 1,000-bed medical center as hospitalizations fell sharply.Singapore last week rejected herd immunity as a strategy, with one official calling it “too big a price for us to pay.”Starbucks Regains U.S. Store Sales (10 a.m. NY)Starbucks has regained about 60% to 65% of prior-year comparable U.S. store sales in the past week, Chief Executive Officer Kevin Johnson said. In China, he said comparable-store sales are about 80% of the year-earlier level.The coffee giant is being watched as a barometer of consumers’ willingness to leave home and spend after the intense lockdown measures that brought much of the economy to a standstill.TSA Changes Airport Screening (9:55 a.m. NY)U.S. airport security screeners will no longer touch or handle passenger IDs or boarding passes at checkpoints, the Transportation Security Administration said. In a statement, the TSA said travelers now will show their passes to the officer for a visual inspection, a step to reduce physical contact. Lines may extend further, as TSA increases the distance between travelers to six feet (1.8 meters), according to the statement.The agency said the numbers of travelers passing through airport checkpoints has steadily increased in the past couple of weeks.Victoria’s Secret to Close Stores (9:40 a.m. NY)Victoria’s Secret said it will close 251 stores in North America by year-end. That’s roughly 23% of its store fleet. More store closures could happen in the coming years, Victoria’s Secret interim Chief Executive Officer Stuart Burgdoerfer said on a call with analysts on Thursday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Lufthansa nears bailout; EasyJet gets ready to fly
    Reuters Videos

    Lufthansa nears bailout; EasyJet gets ready to fly

    Lufthansa is closing in on a rescue deal. It’s expected to see a 9.9 billion dollar state bailout. That will see Germany take a 20% stake in its flagship airline. Lufthansa has been in talks over the deal for weeks. The sticking point has been how much control to yield in return for help. On Thursday (May 21) the firm said the government would get two seats on its supervisory board, but only use its voting rights in exceptional circumstances. Lufthansa expects the deal to include waiving of future dividend payments, and limits on management pay. Reuters sources say the German government will make its final offer Thursday. A glimmer of hope for the sector, meanwhile, over at easyJet. The British budget airline - Europe’s second largest - says it will resume some operations from June 15. It will mainly be UK domestic flights and some services to France. EasyJet says passengers will have to wear masks on board, and there will be no food service. All planes will be subject to enhanced cleaning regimes. The airline hopes to gradually resume more flights.

  • Financial Times

    EasyJet to resume flights next month

    EasyJet has announced plans to restart a small number of flights in the middle of June, which will initially involve the low-cost airline flying domestic routes in the UK and France. EasyJet’s plan comes as airlines and airports across the world are tentatively looking at resuming flights in the coming months.

  • EasyJet Says Hackers Stole Data of 9 Million Customers

    EasyJet Says Hackers Stole Data of 9 Million Customers

    (Bloomberg) -- EasyJet Plc said email addresses and travel data of about 9 million customers were taken by hackers in one of the biggest data breaches to hit the airline industry.The intruders also accessed credit card details for 2,208 customers in the “highly sophisticated” attack, EasyJet said Tuesday in a statement. The airline said it’s closed off the unauthorized access, notified those whose credit-card information was exposed and will contact the rest of the customers over the next few days.Cyber-attacks against businesses and their employees have surged this year as hackers take advantage of the disruption caused by the coronavirus pandemic. While the EasyJet breach was discovered in late January, predating the disease’s flare-up across Europe, the company is alerting those whose exposure was limited to email and travel details to guard against a rising number of so-called phishing attempts, a person familiar with the situation said.Airlines have had several high-profile breaches in recent years. In 2018, Hong Kong’s Cathay Pacific Airways Ltd. disclosed that hackers accessed information on 9.4 million customers, making it the world’s biggest airline data breach at the time. That same year, hundreds of thousands of British Airways and Delta Air Lines Inc. customers had their information hacked.“The EasyJet breach comes at a time of unprecedented challenge for airline operators,” said James Castro-Edwards, a partner at law firm Wedlake Bell. The potential consequences of enforcement action and any ensuing group litigation could be “catastrophic,” he added.British Airways FineThe U.K. fined British Airways, a unit of IAG SA, 183.4 million pounds ($224 million) over the hacking incidents, marking the first major British application of far-reaching European Union rules requiring companies to tighten anti-hacking measures.Under the EU’s General Data Protection Regulation, companies can be penalized by as much as 4% of their global annual revenue, depending on the nature of the incident. For EasyJet, that would be as much as 255 million pounds ($312 million) if the “higher maximum” penalty were imposed by the U.K. Information Commissioner’s Office.The ICO would investigate and take “robust action where necessary,” the agency said in the statement.Attack TimelineThe Luton, England-based carrier reported the breach in January and has been working alongside the ICO and the U.K.’s National Cyber Security Centre, said the person, who asked not to be named discussing a confidential investigation. So far there is no indication that credit card information had been misused, the person said.Passengers whose credit card details were stolen were informed in April and offered 12 months of free credit monitoring, according to an email sent to customers and seen by Bloomberg.An influx of employees working from home has opened up new network vulnerabilities for many companies, and phishing emails purporting to be from trusted health agencies prey on employees looking for information.Read more:Cyber Risks Abound as Employees Shift From Offices to HomesHackers Posing as CDC, WHO Using Coronavirus in Phishing AttacksUnder GDPR, companies have an obligation to report personal data breaches to authorities within 72 hours where feasible. According to the regulation, companies must as soon as possible also alert individuals whose data has been compromised in cases where the breach poses a “high risk to rights and freedoms.”While the U.K. has left the EU, GDPR rules would likely still apply, given the transition period under way and the low-cost carrier’s sizable business with countries and customers that remain within the bloc.The NCSC confirmed it was working with EasyJet to investigate the hack. It recommended anyone with accounts that could have been compromised change passwords and “be especially vigilant against any unusual activity in their bank accounts or suspicious phone calls and emails asking them for further information.”Reuters reported earlier that the hackers were suspected to be Chinese and thought to be involved in similar attacks on other airline websites, citing people familiar with the investigation. EasyJet and the ICO declined to comment on the report.Shareholder ShowdownCovid-19 has already forced EasyJet to ground planes and created the opening for a revolt by its founder and biggest shareholder, Stelios Haji-Ioannou. The International Air Transport Association estimates European carriers face a revenue loss of $89 billion in 2020.EasyJet on May 22 will hold a shareholder meeting called by Haji-Ioannou, who wants to remove four directors including Chairman John Barton, Chief Executive Officer Johan Lundgren and Chief Financial Officer Andrew Findlay. He’s seeking to halt the carrier’s continued expansion plans.EasyJet shares reversed earlier gains after the hack was disclosed, closing 0.8% lower at 547.20 pence in London.(Updates with details on breach from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Daily Crunch: Disney's streaming chief departs for TikTok

    Daily Crunch: Disney's streaming chief departs for TikTok

    TikTok enlists a big name from Disney as its new CEO, Walmart is shuttering its Jet e-commerce brand and EasyJet admits to a major data breach. Mayer’s role involved overseeing Disney’s streaming strategy, including the launch of Disney+ last fall, which has already grown to more than 50 million subscribers.

  • EasyJet says 9 million travel records taken in data breach

    EasyJet says 9 million travel records taken in data breach

    EasyJet, the U.K.'s largest airline, said hackers have accessed the travel details of 9 million customers. The budget airline said 2,200 customers also had their credit card details accessed in the data breach, but passport records were not accessed, a company statement said. EasyJet did not say when the security incident happened or how the hackers accessed its systems, but the company said it referred the incident to the Information Commissioner's Office, the U.K.'s data protection agency.

  • EasyJet cyber attack ‘came from China’
    The Telegraph

    EasyJet cyber attack ‘came from China’

    A “highly sophisticated” cyber attack that has exposed the email addresses and travel details of nine million easyjet customers is reportedly the work of Chinese hackers. The airline, which has grounded most of its flights due to the pandemic, said it did not believe any personal information had been misused, but admitted that credit card details of more than 2,000 passengers had been stolen. Sources close to the investigation claimed the attack had the hallmarks of an ongoing Chinese campaign against travel companies, Reuters reported. “On the recommendation of the Information Commissioners’ Office (ICO), we are communicating with the approximately nine million customers whose travel details were accessed to advise them of protective steps to minimise any risk of potential phishing,” an easyJet spokesman said. How did it happen? The airline insisted that the attack did not come from “someone operating from their bedroom” and said that it was not carried out by "common criminals". A spokesman for EasyJet said the airline notified the ICO, which it is obliged to do within 72 hours of discovering a breach, in January. Since then EasyJet has been working with both the ICO and the National Cyber Security Centre on an ongoing investigation. The spokesman said the airline did not believe the attack was motivated by identity fraud and that the unauthorised access had been “closed off”. The tools and techniques used point to a group of Chinese hackers thought to behind multiple attacks on airlines in recent months. EasyJet said it was “not speculating” on who the attackers were.

  • Financial Times

    EasyJet says hackers accessed travel details of 9m customers

    EasyJet has been targeted in a cyber attack with the email addresses and travel details of about 9m customers breached. Its investigation also found that about 2,200 customers had their credit card details stolen. The scale of easyJet’s breach pales in comparison with some of the world’s biggest cyber attacks, which include hotel chain Marriott’s 500m customer breach, disclosed in 2018.

  • Bloomberg

    U.K. Quarantine Upends Airline Plans for Return to Flight

    (Bloomberg) -- A U.K. plan to quarantine arriving air passengers threatens to upend the airline industry’s timetable for a resumption in flying over the coming summer months.Prime Minister Boris Johnson is drawing up plans for a 14-day quarantine that may be introduced by the end of May, the government said. He will flesh out his approach to lifting the U.K. lockdown in Parliament on Monday, a day after it was outlined in a televised address to the nation.Airlines that grounded most of their fleets since demand plummeted in March have been banking on travel to begin inching back somewhere between June and August. That time frame, now in doubt, would allow carriers to salvage a portion of the ticket revenue usually reaped during the peak summer travel season that ends in September.The quarantine “will once and for all close the book, we think, on any lingering upside risks of a summer rebound in U.K. air travel,” Citibank analyst Mark Manduca said in a note.With recent earnings reports, Ireland’s Ryanair Holdings Plc projected up to 50% of original planned traffic for the July-September period, while British Airways owner IAG SA penciled in about a 45% level.Shares of airlines with a significant exposure to the U.K. slid, adding to significant losses this year. IAG fell as much as 3.7%, with Easyjet Plc dropping as much as 8.8% in London In Dublin. Ryanair declined as much as 5%.Johnson is drawing up plans for a 14-day quarantine system to guard against a resurgence in infections, according to officials.“We will introduce these measures with the exceptions worked out, with the flexibility we need by -- we’re aiming for the end of the month,” Foreign Secretary Dominic Raab said in a BBC radio interview. The quarantine plan would be “subject to a series of exemptions,” he said.London MarketLondon, the world’s biggest market for air travel and a hub for business and tourism, was already feeling the blow from an aviation slump now in its third month. Three operators at London Gatwick -- British Airways, Virgin Atlantic Airways Ltd. and Norwegian Air Shuttle ASA -- have signaled they plan to reduce their presence, at least temporarily.IAG Chief Executive Officer Willie Walsh, testifying to Parliament on Monday, said he was surprised by the U.K. plan.“We had been planning to resume flying on a pretty significant basis in July,” Walsh said. “I think we’ll have to review that.”Johnson Faces U.K. Labor Union Pushback Over Back to Work PlanVirgin Atlantic to Pitch Investors Amid Administration RisksAn $85 Billion Airline Rescue May Only Prolong the PainEasyJet said quarantine procedures should only be in place for a short period and should be “regularly reviewed” to ensure they are targeted and proportionate and don’t unnecessarily constrain air travel.European CoordinationIn Europe, the International Air Transport Association has called for a coordinated approach to reopening, while acknowledging the challenges to this approach given that different countries have different infection rates.The European Commission is due to set out recommendations to the bloc’s governments on Wednesday. The EU’s digital chief, Margrethe Vestager, told lawmakers last week that digital contact tracing apps might “enable at least some traveling during the summer.”With a significant rebound in revenue put off until summer 2021, airlines that are heavily exposed to the U.K. market such as IAG and Easyjet may need to raise more capital, Manduca said. He estimates Easyjet may need as much as 1 billion pounds ($1.24 billion) in added equity.The industry is calling for more government aid.“Ministers are effectively telling people they can no longer travel for the foreseeable future and airlines will respond to that by grounding their operations,” said Tim Alderslade, CEO of industry group Airlines UK. “That is why they require urgent additional government support to get through this growing crisis.”(Updates with airline and Raab comments, EU plans from second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    The Fate of Business Travel Could Hang on Covid-19 Tracing Apps

    (Bloomberg) -- Mobile phone applications that trace the new coronavirus could help decide whether business travelers and vacation-goers get to meet clients or visit their favorite beaches this summer. But politics and disagreement over what system to use threatens to thwart that solution.Governments in Europe and elsewhere are turning to voluntary mobile apps to help trace possible infections of the coronavirus, a tool that will help track and contain what they expect to be resurgent outbreaks of the virus once lockdown measures lift and people start to fly internationally.But officials, airlines and experts say they’re worried that some countries -- such as the U.K. and France -- are working on systems that are fundamentally incompatible with others -- such as Germany and Austria.European Union tech czar Margrethe Vestager made the issue clear to members of the European Parliament this week: “Without interoperability, we will not be able to travel,” she said.In Europe, where travel has been curbed between the bloc’s 27 nations in recent weeks, officials at least agree that apps are an important way to facilitate the return of free movement.“Without technology it will be very difficult to open to the degree that we want to,” Vestager said in an online briefing with the MEPs on Monday.Contact TracingAt issue are diverging approaches over how to handle the apps, which trace who may have been exposed to Covid-19, despite a push by the European Union to make them interoperable.The way countries are rolling out the apps now, a person’s exposure traced on an app in France wouldn’t carry over into Germany if they traveled there, nor would authorities easily be able to exchange that information.While some countries like Belgium are considering eschewing mobile tracing apps altogether, most other European nations are designing voluntary systems based on Bluetooth technology. Authorities are hoping a majority of the population will download them, allowing them to more easily alert individuals of possible infections.With their apps, Germany, Austria, Switzerland and other countries are opting for a decentralized system, which mostly stores information on a person’s phone and will be supported by a tool jointly developed by Apple Inc. and Alphabet Inc.’s Google.By contrast, the “centralized” method, pursued by France and the U.K., would allow information about someone’s contacts to be uploaded to government servers. Officials and experts say those two systems are incompatible.“You’re fundamentally sharing different kinds of data,” said Marcel Salathe, an associate professor at the Ecole polytechnique federale de Lausanne.France, meanwhile, is in a standoff with Apple because the company rebuffed the government’s request to modify privacy and security settings for apps that use the iPhone maker’s Bluetooth technology. French authorities say they need a workaround for their centralized app.Because France’s app won’t be interoperable with most other countries’, it means any travel could be paired with orders to quarantine both upon arrival and return, said a senior French official with knowledge of the government’s plans. Other officials say the government would seek to avoid such an extreme measure for travel within Europe.Restarting AirlinesRepresentatives for the airline industry -- battered by grounded fleets and plummeting passenger numbers -- urged for a cohesive approach to the technology.Airlines for Europe, an association that represents Air France-KLM, Deutsche Lufthansa AG and EasyJet Plc, said contact-tracing apps could, among other measures, play an important role in reviving operations by potentially preventing travelers from coming into contact with coronavirus carriers on-board a plane and at airports.But coordination at the European level is key regarding the use of apps, said A4E spokeswoman Jennifer Janzen. “We need to avoid any risk that passengers would have to download multiple apps for a single trip, for example.”Montserrat Barriga, director general at the European Regions Airlines Association, which represents TAP Air Portugal, Croatia Airlines among others said there is a clear need for co-ordination and harmonization on contact tracing processes.“This is a global industry that requires a global approach, avoiding the adoption of local variations where possible,” she said.A representative for Frankfurt airport, one of Europe’s busiest, says they are in favor of any measure that will enable safe flying in times of the pandemic but that discussions about such apps must take place at a political level internationally.EU officials are pressuring governments to align on the issue, stressing that citizens need to be able to be alerted of possible contagion wherever they are in the EU.In the discussion with the MEPs, Vestager said: “We all hope that this summer is not lost, that we will be able to have vacations and travel.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Some easyJet plc (LON:EZJ) Analysts Just Made A Major Cut To Next Year's Estimates
    Simply Wall St.

    Some easyJet plc (LON:EZJ) Analysts Just Made A Major Cut To Next Year's Estimates

    Today is shaping up negative for easyJet plc (LON:EZJ) shareholders, with the analysts delivering a substantial...

  • Is easyJet (LON:EZJ) A Risky Investment?
    Simply Wall St.

    Is easyJet (LON:EZJ) A Risky Investment?

    Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

  • We’re All Going on a Winter Holiday

    We’re All Going on a Winter Holiday

    (Bloomberg Opinion) -- Anyone up for a beach holiday right now? The answer is probably a resounding yes, anything to escape lockdown and incessant worrying about the coronavirus outbreak and imminent global recession.But would you actually book one for this summer or even the fall? There the answer is more complicated, as it becomes painfully clear that our next vacations will be close to home and overshadowed by concerns about health precautions.There are the optimists: Almost three-quarters of the people who were due to sail in May, but had their dream cruise canceled by British operator Saga Plc, chose to rebook at a later date. The pessimists: More than half of Americans surveyed by Destination Analysts agreed their next vacation would be a “staycation.” Those organized souls who planned their July Fourth escapes before Covid-19 was upon us are playing wait-and-see. French hotel giant Accor SA has seen less than 10% of reservations for July and August scrapped. But it’s still bracing for occupancy rates of 25-30%, as opposed to 75%, when travel begins againWhat’s clear is that we’re all going to be expecting something different for our next getaway: hotels with detailed Covid-19 symptom checks, abundant hand sanitizer, rigorous disinfecting and bars and restaurants configured for social distancing.The $5 trillion global tourism industry has already taken a huge hit from the pandemic, and it’s not over. Figuring out how to cater to tourists and business travelers in this new era will throw up huge challenges for even the most flexible and deep-pocketed companies. The about 35% gain in the Stoxx 600 Travel & Leisure Index since March 18 looks overly optimistic.In the near term, consumers may be reluctant to crowd into airplanes or return to busy tourist hot spots. In response, European discount carrier EasyJet Plc said it’s likely to leave middle seats empty on aircraft with a three-seat configuration, at least when it first resumes flights. The cruise industry, a haunting symbol of the Covid-19 outbreak, is likely to promote smaller vessels, which are more easily adapted to social distancing, a robust on-board medical staff and promises to fly holidaymakers home at the first whiff of a problem. Flexible booking policies without any deposit may become the norm. If all this fails to tempt, then deep discounts will be necessary.This season may be a washout but there are some signs things will pick back up. Dart Group Plc said on Friday that bookings were still coming in to its Jet2 leisure travel business for late summer. EasyJet said winter bookings were significantly ahead of this time last year. Even if some of this may be rescheduling of trips that were canceled, it illustrates people’s eagerness to travel once again. To capture pent-up demand, tour operators including European giant TUI AG and Jet2 have launched their 2021 summer holiday programs early.It may still be a hard sell depending on the destination. For Italy, Spain and France, as well as New York City, the repercussions of having been the epicenter of the pandemic at some point may linger even longer. It took about 18 months for travel to Paris to recover completely after the harrowing 2015 terrorist attacks.With international flights grounded and foreign tourists unwelcome in most places, it’s impossible to say how soon we can start trotting the globe again. The big luxury and event-oriented hotels, such as those operated by Marriott International Inc. and Hyatt Hotels Corp., are more dependent on international travelers than their more downmarket peers. Companies will likely shore up offerings for domestic tourists. For example, Saga, which caters to the 50s-and-over crowd, already offers cruises around the British isles. This business could be expanded if customers are nervous about venturing further afield. In more thrifty times, people tend to seek out no-frills lodging. In the U.S., Wyndham Hotels & Resorts Inc., has the most exposure to the economy and mid-scale sectors, with brands such as Super 8, Ramada and Days Inn, according to Brian Egger, an analyst at Bloomberg Intelligence. In Europe, Whitbread Plc has the Premier Inn chain in Germany and the U.K., where 80% of its properties are outside of London.Airbnb Inc. may be a big beneficiary if tourists seek out private residences to avoid mingling with too many people in hotel lobbies, elevators or restaurants. The trailblazer for the sharing economy may provide more options in smaller towns or isolated regions. But as with hotels, people must have confidence in hosts’ hygiene standards.And as I have noted, some sectors, such as cruising, may struggle to attract customers other than their most ardent devotees. Carnival Corp., operator of the now infamous Grand Princess, said that as of March 15 bookings were down even for the first half of 2021. It’s hard to say just how bad and enduring the impact from this new coronavirus will be. For those companies that manage to adjust, they can expect to be rewarded with some positive long-term prospects, as more people enter the middle class around the world and an aging population has more leisure time. But it will take much more than pictures of idyllic getaways to woo them.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Time To Worry? Analysts Just Downgraded Their easyJet plc (LON:EZJ) Outlook
    Simply Wall St.

    Time To Worry? Analysts Just Downgraded Their easyJet plc (LON:EZJ) Outlook

    The latest analyst coverage could presage a bad day for easyJet plc (LON:EZJ), with the analysts making...

  • Boris Johnson’s Virus Fight Banks on British Love for Its NHS

    Boris Johnson’s Virus Fight Banks on British Love for Its NHS

    (Bloomberg) -- Schoolkids in lockdown put home-made signs in their bedroom windows thanking brave doctors and nurses. Families stepped outside their front doors for a national round of applause. Public buildings lit up blue. Stores have offered discounts to hospital staff, and designated hours.They are hailed as heroes in Italy and Spain as the countries bear the brunt of the coronavirus pandemic, but nowhere does the medical system stir more passion than in Britain. When the government asked for 250,000 volunteers to help, three times that number signed up.The cult of the National Health Service has been key to so many political fortunes over the decades, but no leader has weaponized it more than Boris Johnson after years of austerity measures implemented by his Conservative Party. While peers across Europe come under strain fighting the pandemic, few have more to gain or lose from the ability of the health system to cope than the British prime minister.During the 2016 Brexit campaign, Johnson’s message was that leaving the European Union would save 350 million pounds ($433 million) a week to pump into the NHS, a sum later discredited. His emphatic election victory in December used the slogan “Get Brexit Done” so that the government could focus on areas like “our fantastic NHS.” The mantra for the Covid-19 pandemic is stay at home to “Protect Our NHS.”“The cynic in me says it is easy to clap,” said Martin Lodge, a political scientist at the London School of Economics. “Emotionally the NHS is a uniting symbol. All parties know electorally the NHS is a key thing.”The U.K. is now bracing for the disease to spread rapidly. With 684 fatalities, the country on Friday reported its deadliest day yet, albeit—for now—still behind the daily levels of Spain and Italy.Meanwhile, the government is relying on that regard for the NHS to keep the country united and, crucially, deflect from criticism that the health system has been starved of the money it needs.The last decade has seen the NHS under more pressure than at any time since it was founded in 1948, the vaunted postwar ideal of free medical care for all. Deeper-than-average cuts to hospital beds, seen previously as a sign of efficiency, are drawing scrutiny. The system has about 40,000 unfilled nursing positions and fewer doctors as a percentage of the population than countries such as France, Germany and Italy. “What’s really noticeable in the U.K. is not so much that our funding is out of line, but that our physical capacity is much lower,” said Anita Charlesworth, director of research at the Health Foundation. “We run our system really hot.”Health-care spending has grown just 1.3% a year in real terms since 2009-10. That compares with annual growth of 6% in the preceding 13 years. When it comes to beds, many countries have scaled back as medical care advances, but Britain has cut more than most. That meant more than nine out of 10 beds were occupied before the coronavirus, according to Charlesworth. The number of doctors, nurses and MRI scanners also is below the average of a group of European countries.“The inescapable reality is that insufficient investment in the nursing workforce over the last decade is already making it hard for nursing staff to fight the pandemic,” said Donna Kinnair, chief executive of the Royal College of Nursing, the labor union for nurses. “The government must recognize the added pressure these developments are putting on an already overstretched nursing workforce.”Johnson and Health Secretary Matt Hancock have emphasized that any health system in the world would be unprepared to cope with an uncontained outbreak of the coronavirus, which has so far killed 3,605 people across the U.K.Both have been infected with the disease amid mounting criticism of the government’s response, from failing to protect health care workers by testing them for the virus to giving them enough protective equipment to treat patients.Medical staff have had to isolate with members of their family because they can’t get checked. Only 5,000 out of 1.3 million NHS employees have been tested so far. By the end of April, the government aims to process 100,000 tests a day.The signs from elsewhere in Europe make alarming reading. Italy was forced to call in emergency help from Medecins Sans Frontieres, the group more known for working in Middle East war zones or dealing with Ebola in Africa. Spain has come under fire as hospitals became so overwhelmed that staff were forced to choose who to let die. But in Britain, the impact could have far greater potential political ramifications that go beyond the pandemic. Indeed, one former Conservative chancellor of the exchequer famously quipped that the NHS was the closest thing the English have to a religion.In London, the hardest hit population in the U.K. by coronavirus, medics are already reporting that some emergency departments are struggling.The question is not just whether the NHS can cope, but whether it’s just able to cope enough. In short, whether the coronavirus infects Britain’s most-cherished institution to the point where its future viability is undermined.The tsunami of illness means that there’s no health system, however rich, that would be prepared to deal with it, according to Rosalind Raine, a professor at the UCL Institute of Epidemiology and Health Care in London. “As a direct result of Covid-19, people with other conditions are really going to suffer,” said Raine. She cited the example of one hospital in East London, where at least three people with the virus have died and which could delay chemotherapy appointments due to a surge in patients. For sure, the NHS has fared better than other departments during the spending cuts in the wake of the global financial crisis. The government is also promising to plow tens of billions extra into the service by the middle of the decade. A spokesperson for the Department of Health and Social Care said the chancellor of the exchequer has made it clear the NHS will get “whatever funding it needs” to respond to the pandemic.“There has been a massive cash injection in some much needed equipment to deal with Covid-19 and that is here to stay but do I think that will be sustained once this is over?” said Rosie Kalsi, a consultant intensivist. “No. I think there will be a correction and we will go back to the experience of continued underfunding in hospital buildings, technology and in people.”In the meantime, there’s a national mobilization in preparation for the jump in coronavirus cases. The army helped build a new makeshift hospital with a capacity of as many as 4,000 beds in London with other facilities planned in events centers in Glasgow and other cities.The government called on recently retired doctors to rejoin the medical workforce. Letters were sent to more than 15,000 of them in England and Wales with reportedly more than 500 doctors signing up to return to the NHS in a variety roles in the first 48 hours. Medical students in the final year are also being enabled to practice.Companies have got involved after Johnson called on them to help produce the ventilators needed to treat the worst cases of the disease. Dyson, famous for its high-suction vacuum cleaners, said it plans to contribute, while the Mercedes Formula One motor racing team is working with academics in London to produce hundreds of breathing aids.Grounded staff from airlines EasyJet Plc and Virgin Atlantic have volunteered as part of the effort to bring more personnel into the NHS, while some soccer clubs have made medical staff and facilities available to support the effort.As the virus gets more entrenched in Britain, Annie Evans, a 24-year-old medical student at the University of Sheffield, is getting ready to be deployed in a hospital on the front line.“It very much feels like the calm before the storm,” she said. “It’s a bit scary because nobody knows what’s going to happen.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • BA may suspend 32,000 staff; Boeing eyes buyouts
    Reuters Videos

    BA may suspend 32,000 staff; Boeing eyes buyouts

    Rescue flights are some of the little business left. British Airways planes are bringing stranded Britons home from Peru and other countries. But most of the airline's jets are grounded, and now workers look set to pay a price. Reuters sources say the carrier is in talks with unions to suspend around 32,000 staff. The BBC says the number could go as high as 36,000. That after BA cut flying capacity by 75% in April and May. The plan would see furloughs for cabin crew, ground staff, engineers and head office workers. It excludes pilots, who have already agreed to take two weeks of unpaid leave. The move would come after rival EasyJet grounded its entire fleet, and laid off 4,000 cabin crew for two months. Fresh pain too for the firms that supply the airlines. A separate Reuters source says Boeing plans to offer buyouts and early retirement. The giant planemaker has been forced to suspend output at plants near Seattle after cases of coronavirus among workers. It's looking for 60 billion dollars in government aid to prop up the U.S. aerospace industry.