Easyjet grounds entire fleet

Low-cost airline Easyjet has grounded its entire fleet as of today as a result of government-imposed travel restrictions and national lockdowns across Europe in response to the coronavirus pandemic.

The carrier had already grounded the majority of its fleet last week.

Easyjet is not sure when commercial flights will operate again but said it will "continuously evaluate the situation based on regulations and demand".

"We are working tirelessly to ensure that Easyjet continues to be well positioned to overcome the challenges of coronavirus," chief executive Johan Lundgren said.

The carrier will furlough its cabin crew as of 1 April for a period of two months, with the crew being paid 80pc of their average salary through the UK government's job retention scheme.

European jet fuel demand has experienced an unprecedented fall since the end of February, but jet fuel margins to the North Sea Dated crude benchmark strengthened to $9.98/bl on 27 March, rebounding from a more than 11 year-low on 18 March. The recovery is mainly a result of a series of refinery shutdowns across Europe and stronger German demand for gasoil, although there are signs the latter is beginning to wane.

The International Air Transport Association (Iata) forecasts that the coronavirus outbreak will cut European passenger demand this year by 46pc compared with 2019. The UK is expected to see 113.4mn fewer passengers in 2020, resulting in $21.7bn of lost revenue for airlines, Iata said.

By Florence Schmit