Budget airline easyJet has made its first full-year loss in its 25 year history after the coronavirus pandemic wiped out passenger numbers.
The company, famous for its low cost flights, made a loss of £1.27bn for the year ending September 30 2020, compared to the previous year's profit of £430m.
The huge loss comes after the company saw passenger numbers halve as holidaymakers were forced to stay at home amid sweeping travel restrictions.
EasyJet warned that it expects to only be able to fly around 20% of its usual services in the first quarter of this financial year.
Johan Lundgren, easyJet's CEO, said: “While we expect to fly no more than 20% of planned capacity for the first quarter of 2021, maintaining our disciplined approach to cash generative flying over the winter, we retain the flexibility to rapidly ramp up when demand returns.
“We know our customers want to fly with us and underlying demand is strong.”
Mr Lundgren went on to cheer the "welcome news" of a possible Covid-19 vaccine and added that he expected the company to "bounce back strongly".
Coronavirus has had a worsening affected on the easyJet's ability to operate. The business had previously said it expected to be able to fly 25% of its flights this quarter, but has now down graded this to just 20%. Between July and September - peak summer holiday season - the group flew only 38% of its planned capacity.
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Passenger numbers for the year ending September 30 fell by 50% to 48.1m, down from 96.1m.
Flight capacity also dropped by 47.5% after the airline was forced to ground much of its fleet.
The full-year figures showed revenues plunged 53% to £3bn, down from £6.4bn the previous year.
EasyJet said there had been some recovery in demand over the summer, but that “widespread quarantine measures introduced in September once again eroded demand and consumer confidence to travel”.
In June the airline put thousands of jobs at risk after it decided to close three of its regional airport hubs. The decision saw the firm close its bases at Newcastle, Luton Stansted, and Southend.
Commenting on the easyJet's results Dane Lee, a senior analyst at Freetrade, said: "Jetting away has been anything but easy this year and these results show just how much the virus has weighed on the industry.
"Lundgren has made a surprisingly brief nod to ‘welcome news’ on a ‘possible vaccine’ but we all know just how much hangs in the balance for easyjet. Getting us all back on the plane and travel restrictions lifted is the holy grail at the moment.
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"With passenger numbers slashed in half and losses hitting £835m - within the guided range - the company only has the prospect of operating at 20% capacity first thing next year to look forward to - slim reward for a firm that will feel it has moved mountains since March to stay afloat.
"It’s tough to look at any numbers this morning without having that one line on a ‘possible’ vaccine’ firmly in mind. Easyjet’s immediate future is about shoring up the balance sheet with the money they have but longer term, a vaccine is the only thing that matters - and it’s out of their control."