Conference call, full year results conference call. At this time, I would like to turn the conference over to Johan Lundgren, CEO. Please go ahead, sir.
Thank you very much for that, good morning, and thank you for joining us to discuss the easyJet full year 2020 results. With me on the call are Andrew Findlay here, our CFO, as well then Michael and Holly from our IR team. You should have been sent the slides along with the statement, which are also available on our corporate website. We'll talk you through the presentation and then follow up with plenty of time for your questions. Starting on the first slide here. easyJet is positioned to be the winning European airline as we come out of the COVID pandemic. We have responded robustly to the challenges, having raised over GBP 3.1 billion in liquidities since April 2020 from a diversified range of funding sources. Our year-end liquidity position has increased by GBP 900 million compared to the end of March 2020.
We still retain ownership of 55% of our fleet, with 37% remaining unencumbered. We have launched the largest cost efficiency program in easyJet's history, taking out costs at every level of the business. Not only will this create a step change in our cost base, but crucially will give us a much more seasonal cost profile going forward. Our cash burn performance has been strong, and we have materially outperformed the expectations set out in April. easyJet has an unmatched network with number 1 and number 2 positions in the airports where customers want to fly. This has enabled us to achieve an industry-leading unit revenue performance in the fourth quarter. It has seen our summer 2021 forward bookings ahead of the same time last year, with solid momentum continuing post the vaccine announcements over the last week.
We continue to strengthen our lead by growing market share in the top 20 European leisure destinations. Our trusted brand status, coupled with improving customer satisfaction, which is up 14% year-on-year, sees customers choosing to fly with us time and again. Also with the proportion of seats booked by returning customers increasing by a further two percentage points to 80% compared to last year. Taken all together, the strong liquidity we have with a leaner cost base provide us with the firm foundations to get with unmatched network and trusted brand will mean that customers will choose us when they return to the skies, and our flexibility to ramp up quickly means we can capture and serve that demand when it returns. That's why I believe that we firmly will bounce back strongly as we come out of this situation.
Before we go into that in more detail, I'm going to hand you over to Andrew.
Thanks, Johan, and good morning, everybody. Let's start off with some key performance indicators for the full year. I don't intend going through them all, but it's clear from this slide that the impact of COVID on the business this year has been immense. As you can see, our total capacity decreased by 47.5% to 55 million seats, and passenger numbers fell to 48.1 million, a decrease of 50%. This reduced demand and capacity in the second half clearly had an impact on our revenue and cost per seat metrics, as can be seen on the slide. It's worth noting, however, that overall load factors only decreased by 4.3 percentage points to 87.2%, which reflects the focus we have placed in the second half of the year on prudently managing capacity as the crisis took hold in order to optimize the cash contribution of our flying.
On this slide, we have broken out the revenue drivers during the year. Despite the highly variable capacity and passenger numbers in the second half of the year across our network, we have managed to deliver strong loads and revenue per seat throughout. Our load factor of 76.3% in Q4 was the highest amongst our low-cost and legacy competitors due to our extremely disciplined and prudent approach to capacity. Our Q4 revenue per seat was one of the best in the industry as a result of our focus on cash-generative flying and yield management. Moving on to the income statement on slide seven. Total revenue decreased to just over GBP 3 billion during 2020 as a result of the pandemic. easyJet's underlying cost performance was strong in the 2020 financial year.
Despite high level of fixed costs in the business, headline costs excluding fuel reduced by 31% as the team achieved material savings across many areas of the business, including airport fees, ground handling, crew, and maintenance costs. Fuel cost decreased by 49%, reflecting the reduction in capacity. As a result of these factors, easyJet has incurred a headline loss before tax of GBP 835 million compared to a headline profit of GBP 427 million last year. Non-headline items amounted to GBP 438 million charge. The two large items within non-headline were a GBP 123 million cost related to restructuring that was embarked upon during the second half of the year and is now well progressed.
The majority of the charge relates to redundancy costs and a GBP 311 million charge related to hedge discontinuation and ineffectiveness relating to the significantly reduced fuel requirement during the year as we enter into FY21. Other non-headline items include the profit on sale and leaseback transactions undertaken in the year and the impairment charge relating to a number of leased aircraft that we have put into storage prior to their lease return. This led to a total group loss before tax of GBP 1.27 billion, compared to a GBP 430 million profit last year. Moving on to the revenue per seat bridge, which reflects a year of two halves.
As disclosed at the half year, trading in half one was strongly positive, with a GBP 2.72 per seat positive impact from the strong underlying performance of the business, including network optimization, market consolidation, increasing route maturity, and RPS growth, particularly in Germany. Late yield initiatives allowed us to better capitalize on increased demand, particularly during Q1. Ancillary revenue also showed positive performance in half one, driven by good performance of first bag and allocated seating, generating an incremental GBP 1.16 revenue per seat. Clearly, the COVID pandemic had a very substantial impact on our RPS in half two, with a negative GBP 10.64 per seat impact over the full year. During the second half, our operations, commercial, and finance teams worked together to proactively manage our capacity and scheduling in real time.
We responded flexibly to rapidly changing travel restrictions and were able to capitalize on all available demand. We demonstrated an unflinching focus on positive contribution whilst doubling down on yield management to ensure optimized pricing whilst remaining competitive. Now moving on to cost. As highlighted earlier, group headline costs excluding fuel reduced by 31% at constant currency as we achieved material savings across many areas of the business. Airline cost per seat at constant currency, however, rose materially, primarily as a result of the decreased capacity flown. Despite the cost-savings actions taken, the main area of cost per seat uplift were in categories where more of our costs are fixed. The uplift in ownership cost per seat reflects our depreciation policy, unlike some other airlines, is on a straight line basis rather than a usage variable basis, so the charge is not reduced due to less flying.
In crew, we took decisive action to utilize European-wide furlough arrangements and initiated a restructuring program to remove up to 30% of headcount, the benefits of which we saw at the tail end of the year and will see in FY 2021 and beyond on a sustainable basis. Overheads benefited from the termination of all discretionary spend and a 30% reduction in management and administrative headcount. Maintenance activity was reduced in a targeted way, but continued to ensure we supported a safe operation and with aircraft ready to use if demand returned. It also includes the one-off maintenance provision catch-up from half one. In other areas that are more variable, we also took cost action, particularly in airports and ground handling, where we have secured lower rates and more favorable contracts. Moving on to fuel and FX. This slide summarizes the impact of fuel prices, currency, and hedging.
The average market price for jet fuel in the year was $575 per ton, a 13% decrease. Due to the full grounding of the fleet on 30th of March 2020 and the lower capacity thereafter, easyJet became significantly overhedged from both jet fuel and an FX perspective. After taking into account our commodity and currency hedging, the sterling cost of fuel per metric ton was GBP 489, which is a GBP 31 or 6.8% increase compared to 2019. Moving on to foreign exchange. The euro rate fluctuated between EUR 1.05 and EUR 1.21 during the year. At net-net, there was a headline GBP 29 million positive impact from currency movements, which includes those within the revenue, fuel, and other cost lines. Now moving on to the cash flow bridge on slide 11.
I have expanded this graph to illustrate the cash movements in half one and half two. I won't dwell on the movement in the first half and will focus on the second half cash flows to the right of the second gray bar. easyJet took swift and decisive action to raise almost GBP 2.4 billion during the period from a diverse range of funding sources. Liquidity raised during the second half comprised GBP 400 million from a drawing down of an existing revolving credit facility, GBP 400 million from two term loans, GBP 600 million from the U.K. government's COVID Corporate Financing Facility, a net GBP 588 million in sell and leaseback transactions, and a net GBP 409 million in new equity issuance. Since the end of the financial year, sale and leasebacks of a further 30 aircraft have been transacted, raising an additional GBP 717 million.
Following completion of these transactions, we retain ownership of 55% of our fleet, with 37% unencumbered. These measures have further underpinned easyJet's liquidity position and credit metrics while also enhancing our robust balance sheet to provide a significant liquidity buffer as we enter winter. Our cash position at 30th of September 2020 of GBP 2.3 billion is more than double the average level over the prior three years. As previously indicated, easyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding opportunities should the need arise. Total cash burn of GBP 774 million during Q3 was reduced to GBP 651 million during Q4. Working capital movements in half two, excluding refunds, were positive, reflecting strong management in this area. Cash refunds paid to customers in half two totaled GBP 863 million.
During the pandemic, easyJet has sought to offer its customers increased flexibility and options, including the choice of refunds or vouchers, or the ability to move flights without fees. The amount of flight vouchers currently in issuance is relatively low, with a value of approximately GBP 250 million, which we look forward to honoring this financial year. As can be seen on the slide, as a result of these actions, cash and cash equivalents at the end of the year are almost GBP 1 billion higher than at the end of March. This brings us onto the balance sheet, which continues to be rated as one of the strongest in the industry. Movement in our derivatives primarily reflects the reduction in market fuel price and our over-hedged year-end position. Unearned revenue decreased by GBP 455 million.
This reflects the reclassification of amounts due to customers whose flights in April and May were canceled due to COVID travel restrictions into trade and other payables, but also the payment of GBP 863 million in cash refunds in the second half of the year. Trade and other payables have increased as a result of this reclassification, but also reflects extended payment terms from our suppliers. Looking at cash, easyJet ended the period with GBP 2.3 billion in cash and money market deposits, compared to GBP 1.6 billion in 2019, having successfully raised liquidity, as discussed on the previous slides. Net debt increased to GBP 1.1 billion, and as at 30th September, our liquidity position was GBP 4 million per 100 seats, representing a material headroom compared to our target liquidity buffer of GBP 2.6 million per 100 seats. Moving on to our fleet plan.
The deferral of 24 aircraft deliveries from Airbus to delivery dates beyond 2025 means that for the first time in easyJet's history, there'll be no new aircraft deliveries in this financial year. This also drives a reprofiling of the pre-delivery payments. Our contract with Airbus is a key demonstration of easyJet's fleet flexibility, allowing us additional flex in the phasing of our aircraft deliveries and capital deployed. Just to explain the graph, the top dotted line in this chart illustrates our current maximum arrangements with Airbus, as well as current lessors. The lower gray line represents the contractual minimum fleet size. This illustrates the flexibility in our fleet deal with a range of over 30% between our maximum and minimum fleet sizes. Overall, we believe that easyJet enjoys the most flexible fleet arrangements of any European airline.
It should be noted that this chart does not include any future potential opportunistic lease additions to the fleet if incremental demand arises. As at FY21, easyJet will be storing eight leased aircraft on behalf of their respective lessors. These are held at zero rent unless flown, and are therefore not included within the 302. Slide 14 summarizes our expectations for gross CapEx over the next three years. This doesn't take into account any sale and leaseback proceeds. In FY21, we expect to spend around 600 million GBP, with only a very small fraction of that to be spent on pre-delivery payments, as represented by the orange sliver in the first bar. Maintenance expenditure includes amounts expected to be incurred on lease returns. The lease payments include the capital element of the lease rentals relating to sale and leaseback transactions.
Gross CapEx for financial year 2022 is expected to be in the range of GBP 600 million-GBP 800 million, and to be in the range of GBP 600 million-GBP 1 billion in financial year 2023. The broad range of CapEx outcomes reflect our aircraft order flexibility and rate of lease returns, and will depend upon the decisions we take in the light of future demand. Slide 15 summarizes our forward jet and currency effective hedge positions. As we've already discussed, there was a GBP 311 million charge relating to hedge ineffectiveness due to easyJet's significantly over-hedged position from both a jet fuel and FX perspective, following the full grounding of the fleet and lower capacity thereafter. To mitigate the effects of over-hedging, a number of actions have been taken, including putting jet fuel hedging on hold for the period up to October 2021.
Excluding any ineffective amounts, our expected FY 2021 jet fuel requirement is currently around 77% hedged at $605 per metric ton, and our expected FY 2022 jet fuel requirement is currently around 44% hedged at $490 per metric ton. With that, I'll now hand you back to Johan.
Thank you very much for that, Andrew. We have been decisive in meeting the challenges of the coronavirus through delivering over GBP 3.1 billion of liquidity from a diverse range of funding sources, including the announcement that we've done today with a further sale and leaseback transaction. We've launched the largest cost efficiency program in easyJet's history, which will see cost reductions delivered across all cost lines in the business. Implementing a restructure program, which has so far seen union or works council agreements reached in the U.K., Germany, the Netherlands, and Portugal. Maintaining strong control of the cash burn throughout H2 in 2020. Remaining extremely disciplined and focused on flying, which drives a positive contribution as delivered cost savings as expected. Also maintaining a high level of flexibility, as Andrew talked about here, in our fleet plan while reducing CapEx. Moving on to slide 18.
Let me just demonstrate how responsive easyJet has been to some of the rapid spikes in demand when restrictions have been removed. When restrictions were lifted for U.K. travelers to the Canary Islands last month, we were able to add 180,000 seats just within 24 hours, and the first departures leaving within just 48 hours in time for the half-term holidays. We were by far the fastest to act on that. We were also agile not only in capturing the existing demand, but in stimulating even more through immediate updates to our homepage, app, emails, and social media, targeting 8.5 million consumers. The response was tremendous. We had an increase in sales of 876% over the following five days.
We know that there's not only huge underlying demand to travel, when conditions allow it to do so, but that demand is increasing every time a change in the quarantine occurs. This was seen most recently in the Canaries, where demand was significantly higher than that experienced when Portugal came off the quarantine list weeks earlier. This shows that the pent-up demand is set to grow as the pandemic continues. Moving on to slide 19. We talked many times before about easyJet's structural advantages, and never have they been more valuable than now. Our network of number one and number two positions at the primary airport is unmatched and drive higher yields. One effect of the pandemic will be to create new opportunities for us to expand. The recovery will come first in shorter leisure market where our business model is primarily focused.
This is also where we have recently grown our share in key leisure markets that matter, with a 9% increase this summer in key leisure destinations and the announcement of two seasonal bases in Malaga and Faro. Not only do we have the leading positions in Europe's favorite leisure destinations, but when business travel returns, and it will do so, we expect to take market share with customers who will gravitate towards value, as we've seen in previous downturns. The high caliber of our people is a key source of differentiation for easyJet compared to other airlines. Despite the challenges of the COVID and the resulting restructure, we continue to attract and retain the best customer-facing talent, which drives excellent service, CSAT, and customer loyalty.
The easyJet brand ranks as the best value for money and is the first choice brand in most of our home markets. As sustainability is becoming even more important for consumers when choosing brands. easyJet is a clear industry leader with its efficient operation, carbon offsetting, and focus on future technologies. Finally, we have a significant cost advantage versus our competitors in the primary airports which we serve. The restructuring we're undertaking is further strengthening that competitive advantage as our cost base becomes more flexible and seasonally aligned. These structural advantages give us the best foundation upon to which we can build for the recovery, and I'd like to talk to you more about these in a little bit more depth. Moving on to slide 20.
As we discussed before, easyJet has 55 number one or number two positions in key airports across Europe, with number one and number two positions in London, Paris, Berlin, Milan, Amsterdam, Geneva, Manchester, Lyon, Basel, and many more. These are big, populous, wealthy catchment areas with more than 300 million people living within an hour's drive of an easyJet airport. This network has not only provided competitive advantage, but it cannot also be easily replicated. The scale of our operation in these cities provide us with leadership positions that cannot be matched. For example, more than 30 planes touch Milan, 20 touch Paris, 15 in Geneva, and more than 100 in London. While we do expect changes in the competitive landscape in the wake of the coronavirus, we will defend, maintain, and build our market leadership in these cities and compete vigorously. Moving on to slide 21.
In addition to the existing lead we have in our core markets, we see significant opportunities for growth. In particular, we will see further bolster our leading positions in Western Europe's top leisure destinations, adding new bases to provide network breadth and flexibility, as well as unlocking cost benefits, managing seasonality, and importantly also, supporting the growth of easyJet holidays. This approach will also ensure that easyJet remains top of mind for customers and is seen as the local airline. We will also look to expand in an opportunistic but disciplined way through a list of focus cities. This is a low-risk way of serving large origin markets, creating a leading offer without necessarily basing assets there. Slide 22. easyJet's business model is the foundation for us to bounce back strongly. As you can see, short-haul travel is already recovering more quickly from the pandemic than long haul.
Short haul is seen as a lower financial risk from a customer point of view and from a health perspective. Secondly, over 80% of our passenger travel for leisure and as seen in previous downturns, leisure demand will return and come back one to two years faster than business travel. Our airport capacity there and our capacity share at the top leisure airports will increase to 13.6% in 2020, which is up 1.1%. As business travel returns, we're also well positioned, and as you can see on the bar chart on the right of this slide, in the downturn which followed the global financial crisis, customers gravitated strongly towards value, so we are likely to increase our share of this market.
That's why we're uniquely positioned to benefit from the bounce back in demand as we're recovering from the pandemic. easyJet holidays. The package market holiday is also expected to benefit from an early recovery. easyJet holidays has also seen increasing demand spikes when countries are removed from quarantine restrictions, with a growth of 308% in bookings when Portugal was removed in July, rising to 552% in October with the Canaries removal. More recently, also, the news of the vaccine resulted in our holidays bookings doubling the day following the announcement. This, in addition to us having retained the majority of disrupted customers from summer 2020 into 2021, means easyJet holidays bookings are significantly above previous years at this point.
As well as being well-placed to capture leisure demand, easyJet holidays is also in a uniquely strong position, thanks to its combination of its low and flexible cost base, great value holidays and hotel partnerships, and flexible policies, which drives confidence for consumers to book. Its flexible model without commitments enable us to be able to offer the destination and hotels that customers want, not those being sold to fulfill financial obligations like traditional tour operators. The low-cost base of the airline supports our value proposition. Using external price comparison data on like-for-like searches, easyJet holidays offers the best value on 75% of all holiday search. With a 93% variable cost base, the business can adapt quickly to future demand.
With the repositioning of our holidays offering through directly contracted handpicked hotels, we've been able to increase the average booking value by circa 70% compared to previous outsource model. Key to leisure travel success in the future will be customer flexibility. Our leading protection promise offers the best price guarantee, full payment only 28 days before departure, and fee-free changes and cancel without losing money. Let me talk to you about our people who differentiate us from competitors and are a key reason for customers choosing to fly with us. They are the foundation on which this business is built upon, and the right people, as they do in easyJet, will make the difference. On our aircraft, I believe we have absolutely the best crew there is in the skies.
Like so many other businesses, we have recently had to make some very tough and difficult decisions that were very difficult for everyone in the company. Despite this, our people have been remarkable in their support of the airline, and that is testament to the orange spirit that they have in them. Recent appointments that we've done to AMB have seen us invest in industry expertise, further bolstering the experience in every area with both Kenton Jarvis joining as CFO in February and Stuart Birrell as CDIO that has recently also just joined us. Moving on to the brand. Slide 25. Our brand and customer proposition is clear and is well understood, providing ease and value. Not only is this winning with our customers, but it will be ever more important during the recovery.
In times of uncertainty, customers look to brands they can trust and that offer them the best value. easyJet has a leading industry position in price versus worth metrics, and it's also seeing positive movement in brand trust scores across all our markets. Moreover, despite the challenges of the pandemic, our brand scores, including first choice brand score, has seen positive movement across all major markets, U.K., France, Germany, Switzerland, and Italy. Customer satisfaction increased to 83% in Q4, which is an improvement of 14 percentage points versus Q4 in 2019. We have a strong customer loyalty, and this is significant because returning customers are less expensive to attract and typically buy twice as many flights per year as first-timers. This year, 80% of our seats were booked by returning customers, which is up 2% from full year 2019.
Finally, COVID has changed customer habits, moving them more online than ever before, and we already have many years of digital leadership and innovation under our belt. Moving on to slide 26. Cost and cash are absolutely crucial. Over the course of the pandemic, our largest ever cost program is resetting our cost base and driving sustainable efficiencies for many years to come, as well as addressing structural issues like seasonality. In the initial period post the COVID hit, easyJet went through a decisive list of actions to deliver a rapid cost out program that included utilizing the furlough schemes available across Europe for all crew and M&A staff, renegotiating the fleet deal and the aircraft deliveries, deferring non-essential maintenance and aircraft storage. As part of our cost efficiency program, we've been able to rightsize the airline and deal with the issue of seasonality.
Initiatives in this area included a 30% reduction in full-time employees while also reaching a two-year pay freeze agreements with unions in six countries. 10% of our U.K. headcount has moved to seasonal contracts to date with the agreements also including changes to the work patterns. A 30% reduction in M&A staff. Finally, the program is also focused on delivering structural efficiencies that will drive long-term cost savings. These would include targeting a crew productivity improvement of 20%, deliver simpler ground handling contracts that drive greater value and focus on punctuality. Productivity improvements with better service targeting a 50% reduction in events that leads to EU 261 cost. Airport deals focus on growth and volume, maintenance insourcing and low cost contract extensions, and a fleet allocation and a fuel saving program that drives efficiency and supports our sustainability agenda. I want to talk about sustainability.
easyJet is the world's only major airline who started offsetting 100% of the CO2 from our flights and our ground operations on behalf of our customers. Since then, we have retired over 3 million carbon credits on high-quality schemes certified to the internationally respected VCS standard or gold standard. These schemes also have wider benefits on communities' livelihoods and biodiversity. We firmly believe it's the right thing to do, while we do work to encourage and support the development of radical new technologies to reinvent aviation. In the meantime, we continue to work tirelessly to minimize the carbon we emit, flying the highly efficient Airbus NEO airplanes, which are 15% more carbon efficient than the aircraft that they replace. During the lengthiest bad news of the pandemic, one positive strand of news has emerged, and that's the stream of technology breakthroughs.
This summer saw both the first all-electric flight take off from Cranfield, and also the first hydrogen-powered flight, both of which would've been unimaginable just some years ago. Our own partnerships with Wright Electric and Airbus has also seen exciting developments, particularly the Airbus announcement in September of their plan to launch a zero-emissions hydrogen-powered plane by 2035. We are running joint workshops with Airbus to help inform of the designs of that concept. I'm also very pleased to be sitting on the Jet Zero Council set up by the U.K. government this year and tasked with making net zero emission flights a reality. Meanwhile, we have taken steps internally to enhance our carbon management and reporting, going beyond compliance to publish our Scope 3 carbon emissions and having our carbon KPIs externally also verified.
Our sustainability governance has been strengthened, with sustainability now a regular focus of the PLC board, at the AMB, and also at a dedicated steering committee. Moving on to slide 28. Despite the pandemic, we have not lost sight of the commitment that we have to sustainability. Not only is decarbonization a fundamental challenge for the industry, but we also know that this is of increasing importance to our customers. 72% of consumers say sustainable behavior by a company is now a more important factor when they make a purchase decision. That is borne out by our data. We've seen an 8.3% increase in likelihood to choose easyJet over another airline when a consumer is aware of our carbon offsetting policy. We also seen a 6.6 percentage improvement in overall satisfaction for those that are aware that their flight is offset versus customers who are not aware.
Evidence that flying carbon neutral is not only the right thing to do, but it's actually also an active driver when it comes to customer preference, satisfaction, and retention. Moving on to outlook. As we have stated, based on the current travel restrictions in the market in which we operate, easyJet is expected to fly no more than circa 20% of the planned capacity for Q1 financial year 2021. The European slot waiver in place for this winter will enable easyJet to best match our capacity against the lower demand that currently exists. We remain focused on cash-generative flying over winter to minimize losses during the first half. We'll retain the flexibility to ramp up capacity quickly when we see demand return.
At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year. Moving on to the summary. As you could tell, we've responded swiftly and decisive to the actions that we have taken at the start and the outset of the pandemic. We've launched the largest cost efficiency program in easyJet's history, which is going to see cost reductions coming through in all cost lines in the company. We have a unique short-haul network and a trusted brand that will see customers choose easyJet when they return into the skies. We believe that people are differentiating us and ourselves from competitors, and we know that customers are choosing us for the people that we have and the crew that we have that we believe is the best in this industry.
This is what this company is built upon. We know that customers will return, and when they return, we know the underlying will definitely be there. We will see also a pent-up demand that is increasing also as we speak. Crucially, we retain the agility and the flexibility to rapidly ramp up to capture and serve that demand when it comes. With that, thank you very much for that, and we are now going to take questions.
Thank you. We'll now take our first question. It comes from Daniel Röska of Bernstein Research. Please go ahead.
Morning, Johan. Morning, everybody. Please, if I may, then, number 1, if you only fly cash-positive flights, the majority of refunds should be processed by now, and your restructuring efforts now. Would it be fair to assume that your cash burn should not increase during winter? In the past, you gave a little bit of an outlook of what to expect in terms of cash burn. Could you kind of let us know a little bit what the downside risk to that view would be, saying that the cash burn cannot get worse into your Q1 and Q2? Number 2, you're currently on a negative outlook for your credit rating. How important is an investment-grade rating to your capital allocation strategy going forward? What actions could you still execute to maintain your investment-grade rating into next year?
Lastly, maybe on your initial comment, Johan, saying a winning airline exiting the COVID scenario, I'm just trying to reconcile how are you planning to capitalize on the opportunities that you see in the market with the shrinking fleet? Does this mean you'll retreat from some markets and kind of concentrate on others? Just how you're thinking about kind of capitalizing on the opportunities with your current fleet plan? Thanks.
Yeah.
Yeah.
Thanks, Danny, for that. I'll start from question 3, and then Andrew, you can do the 2 other ones. This is a very important question. We know what's going to happen as we're coming through the pandemic, because you can look at the patterns that has taken place in previous downturns. What is going to happen? You're going to see short-haul returning quicker than long-haul, as an example. You're going to see that leisure and the easyJet holidays is going to recover quickly than business. You're going to see 2 things that's going to happen. Customers will both focus on companies that they can trust and that also provides value for money. All those things sits at the core of the strength of this company.
We don't know to what extent it will happen, when, but we know it will happen, because as we go through the pandemic, once the infections and the COVID-19 is under control through a mix of vaccine, through a mix of testing and quarantine systems, we're going to see the recovery coming back. What we have done and what we set out to do very early on, Danny, was, as you know, we talked about the flexibility we have within the fleet. The flexibility we have to also grow when we see opportunities that are there, and there will be opportunities coming our way. We can also see that we have the opportunity to adapt, to maximize the profit per seat, if that means that we need to have a lower number of the fleet.
That's why it was so important at the start of the pandemic, when we had our discussions with Airbus, to make sure we have that flexibility within the fleet deal to be able to do that. This is an important thing. easyJet is a growth story. Make no mistake about this. We have also set out very early on, and I think we were right to do so, to say we don't know for the extent how long this pandemic will last. There were multiple competitors out there who said that this is going to be over in Easter out of this year, or we will come back in the summer. We've said that we don't know when that's going to happen. We need to plan accordingly.
That's why it's important with actions we're taking, reducing the cost, managing the cash burn, getting access to liquidity, make sure we got flexibility in the fleet, knowing that the parameters that I said earlier will come and they will happen. I can't think of another airline that would be better placed to capture on that. Look, we're going to have the opportunities to grow when we see we grow, but we will only grow when we can see that it's profitable to do. In the cases where somebody wants to attack us, we will attack back. It's the way it is. That's what we're going to do. I think with the reset that we have in our cost base now, that's going to deliver savings for years to come.
That's going to put us in a relatively better position, I believe, than where we were going into this crisis. I hope that answers that question.
What's your lead time to kind of getting from the, let's say 302 aircraft, which your base plan is to the 322? How fast could you potentially switch directions if you wanted to?
Let me answer that one, Daniel. I'll answer the other two as well. Let me go back to the first couple you asked. We haven't given guidance on cash burn. Clearly, it's an absolute area of focus for us. We're taking all actions to ensure we mitigate cash burn, as you saw in Q3, Q4, we haven't given any further guidance on that. Rest assured, the cost actions we've taken and the working capital actions we've taken are all around mitigating that cash burn through this winter period. With respect to credit rating, clearly maintaining a strong credit rating and balance sheet is very important to us. We've taken significant steps to ensure that's the case. The rating agencies, I won't speak of them, but they are very focused on liquidity, hence our focus on that.
They're very focused on cost actions that we can take, and we're very focused on that. To a certain extent, they look through the cycle and we're, again, very focused on that as we talked through today. With respect to the fleet, we have a plan to get down to 302 as we speak today for FY 2021. Now, as we said, we retain the upside flexibility to grow if the demand comes back better. I think it's fair to say our ability to flex is significant. Not only have we got significant proportion of our fleet are leases where we can choose to extend or not extend. That's the majority of the reduction that you see in the bottom side of that fleet graph is a result of termination of leases.
We have the ability to extend, and let's face it, lessors would love to have us as a covenant, as an extension to their leases. We're in conversation with Airbus around exactly how many aircraft we're going to buy over the coming years. We've got flexibility there as well.
Thanks for that.
Thanks for that.
Should we take the next question operator?
Once again, if you would like to ask a question, please do so by pressing star one. Going forward, can we please limit our questions to a maximum of two? We'll now take our next question from Jarrod Castle of UBS.
Thanks. Just exploring some of those topics further, can you give an update where your actual liquidity is as of now? Obviously you've done some sell and lease back post year-end, so that would be useful. Just on cost control, where are we in terms of overall group targets? I think a few months ago it was potentially extra unit cost could be flat, if I'm not mistaken, going into 2021 or during 2021 at some point at least. Can you give any kind of guidance on cost control targets, please? Thanks.
We're not giving any guidance on cost. This is the largest, most comprehensive program on cost that easyJet has ever launched and will deliver. This is going to reset the cost base of what we do. We have very ambitious targets, as you could imagine, also internally. I think that there's still too much uncertainty out there in the environment for us to come out with targets on this. It's a massive focus for ourselves. By resetting the cost base and then also giving us now the opportunity to match the seasonality with the agreements that we have with unions is going to give significant advantage to where we were before, as an example. We're not giving any guidance on that.
I'd just like to say also that this will be a continuous focus for ourselves, because we want to make sure that we come out relatively stronger than others as we evolve through this situation. Not only to manage through the current situation and the crisis, but also then make sure that we come out in a way that we have a competitive advantage relative to others on the airports that we serve.
Jarrod, on liquidity, clearly I can't answer the question regarding where we are on liquidity today. I can only answer what's in the RNS. As you know, that we're at GBP 2.3 billion cash at the end of the year. Subsequent to the end of the year, we've raised a further GBP 700 million on SLBs, hence the GBP 3.1 billion raised. That's all I can say, I'm afraid.
Our next question comes from Savanthi Syth of Raymond James. Please go ahead.
Hey, good morning. I realize this is not guidance. I was wondering what level of activity is assumed when indicating that you're 77% hedged for FY 2021 and 44% for FY 2022. For my second question, if I might ask Daniel's question slightly differently, if you compare it to the September quarter, in the December quarter, what are the headwinds and tailwinds from a cash burn standpoint? I realize there's lower activity, lower sales, but are there any kind of catch-up payments or anything else we should be aware of that's different in 4Q, in the December quarter versus the September quarter? Thanks.
Sorry, first question, I didn't quite hear it.
Sure. Sorry. The first question, just kind of curious, what level of activity is assumed in that hedge guide? I'm just curious so that I know what level of fuel is actually hedged for FY 2021 and FY 2022.
I'll take those. On the hedge, they're based on our estimates as of today, what we expect the fuel to be. Clearly, we're not going to give you a specific guidance on fuel burn because that would give you guidance on what we expect to fly for the full year. It effectively reflects the reduction in winter capacity and our expectations throughout the remainder of the year. We continue to review it, as you'd expect, and we have a rolling program. We've stopped hedging for the period up until October 2021 from a prudent perspective, but we have started our hedging beyond that period, and we'll review on an ongoing basis. With respect to Q1 cash flows, you're absolutely right.
The key drivers on cash flow, obviously, are around bookings. Obviously Q1 is quite a quiet period because everyone's focused on Christmas and spending money at Christmas. We'll obviously look to post-Christmas to see the typical uplift in bookings that we expect to see, but Q1 is pretty quiet when it comes to bookings. One of the other tailwinds, obviously, you've got the working capital payments that you pay for the flying that you've done in the Q4 period that you'll see in Q1. There are the two big swings in the Q1 period that you might not get elsewhere in the year. Hope that helps you.
Our next question comes from Stephen Furlong of Davy Research. Please go ahead.
Morning, gentlemen. Just back, two questions. Back to cash and costs. How important would you say calendar Q1 is on the cash inflows? Usually a significant period for cash for the summer bookings. Do you model that relative to previous years before you decide whether you need other liquidity actions, particularly with Easter coming up I know on the 4th of April? Second point, maybe just on cost. I guess, is there a certain size? The previous guidance given back at the interims of flat head to cost by 2021. My point is, do you model or forecast, is there a certain size the company has to be compared to pre-COVID to get back to something of that kind of magnitude? Just a general, even qualitative comment would be good. Thanks a lot.
Yes. Thanks, Stephen. On cash, you're absolutely right. Post-Christmas, you do see a ramp-up on bookings. We've been absolutely realistic in that. We've been prudent. We do expect a shortening of booking curves, as we've seen in this financial year, as people book tighter to the point of journey. We'll keep a very close eye on that, Q2 is typically where you start to see the ramp-up into that Easter and early summer period. With respect to costs, to a certain extent, we are not as focused on cost per seat. We're now focused on absolute cost and getting that down as much as we can through the efficiency program that Johan talked about, with a view to getting this business really efficient. To the extent that we're looking at seasonality of that cost, which is absolutely important.
You'll have seen from previous announcements that we've done a very good job in discussion and partnership with our unions to improve the seasonality of our summer versus winter cost phasing through agreements of part-time pilots within the U.K. That's a really important focus to us at the moment. We're now into the next phase. All of these cost savings are baked into our budgets and tasks for the whole team. The whole team is geared up, ready to deliver on the cost savings that we talked about today.
Our next question comes from Jaime Rowbotham of Deutsche Bank.
Morning, everyone. Two from me. Firstly, in light of the restructuring you've done to the fleet plan, and in particular, the employee base with that 30% reduction, I'm just wondering, what's the theoretical maximum capacity you think you could put on for summer 2021 in case the snapback in demand is very strong? Despite your responsiveness to date, I'm guessing that percentage would be some way below 100% of pre-virus levels. Secondly, a follow-up just on cash relating to timing. Are there cash outflows still to come linked to the restructuring charges booked in fiscal '20 and linked to the fuel over-hedging, i.e., is any of that not cash settled yet? Perhaps I could just add, what do you think is the most likely plan for repaying the first GBP 300 million of the CCFF loan? Is that a bond issuance, perhaps? Thanks.
I'll do the first question on that. We are absolutely certain that we're going to be able to supply the capacity needed for whatever demand is out there for the summer. If this bounces back and it comes back quicker than any one of us would have expected, I can assure you that we're going to be able to accommodate that demand in any way, which way you can imagine.
Yeah. On cash outflows, with respect to the restructuring charge, as you know, we took GBP 123 million. I think in the back end of the RNS you'll see some commentary around some of the accounting judgments we've made on provisions, and you'll see in there the provision position regarding the restructuring is about GBP 100 million. We've still got a fair amount to go on that, and that's all baked into our cash outflows for FY 2021. Clearly, discussions are underway with a number of our European colleagues, and frankly, we hope to be in a good position with regard to that cash outflow as we were in the U.K. with respect to the few redundancies we made.
With respect to the hedging, that's an ongoing rolling, the ineffective hedging charge of GBP 311 million in the year, that's a rolling cash outflow, and it occurs when the hedges are closed down. Effectively, we have to take the P&L charge, and that rolls through. Clearly, a fair proportion of that would have been relating to the Q4 period in the prior fiscal year. The remaining amount predominantly is the Q1 financial year this year, and just slightly over into Q2, but that's the timing of those. With respect to the CCFF, this is all around capital management in a sense that from our perspective, we've got to wean ourselves off that short-term debt. We haven't announced any plans around replacing. We've been very clear today around the SLBs that we've transacted today.
We've been very clear around the timing of cash flows on the CCFF, and we continue to assess all funding options should the need arise in the future.
Our next question comes from James Hollins of Exane BNP Paribas.
Hi, morning. Just one from me, actually. On the sort of seasonality and flexibility in the staff cost base, I think it's pretty important strategic update. You'd said 10% of the staff will be on seasonal contracts. I assume that includes pilots, or mainly is pilots. I was just wondering what the right number is on that in order to have the flexibility you want. Is it 10% or should it be more? Secondly, is that something you expect to be able to keep long-term? Obviously, as things normalize, I suspect unions and pilots get a little bit less interested in that plan. Just finally, where we are on staff cuts. Are you still targeting up to 30%? Running where we are now, if 30% is still the expected number. Thank you.
Much for that. You're absolutely right. These are changes to the structure that is sustainable, that will give us benefits also as we continue in terms of the seasonality. You would also see that there is a productivity improvement that we target about 20% on what we're doing. I think that's really a step change from something that has long been an opportunity for ourselves that we now manage to achieve. I think it's also in terms of when we're looking at the impact and the redundancies we've been discussing and engaging, I think, constructively with our union partners, that's got to get us into a good place. Some of those things are concluded.
We are also looking and are in discussions also continuously throughout the whole of the network also. We will not stop in looking at things that is going to make us more efficient and more productive in every sense. This is not only about what we have done and delivered to date, of what is here. It's a continuous focus and will continue to be something that we're going to spend a lot of time on also going forward.
Our next question comes from Muneeba Kayani of Bank of America. Please go ahead.
Good morning, everyone. Just wanted to ask on the vouchers of GBP 250 million, how does that compare with your bookings right now? We've seen press articles mention that you're speaking with the European governments on funding. Can you please give some color around that?
I'll start with the last part of the question. We're discussing with European governments in all our core markets to make sure that we are getting the right level of support reflecting also the size and importance we have in those core markets. We have received also support mostly in the shape of the furlough schemes that is out there. We are a big, large airline in the multiple jurisdictions out there, and therefore, it makes sense to continue to have those discussions with the government, and we will do so.
On the vouchers question, yeah, GBP 250 million, actually, we believe it's a very low number. It's a good position to be in the sense that even if you compare it to FY 2020's revenues, it's less than 10% of the revenues. We can't comment on what we expect that to be for bookings, given we haven't disclosed our booking position for the coming financial year. Clearly, having a relatively low level of vouchers and the fact that we've paid GBP 863 million in refunds sets us up in a good place when it comes to future bookings and cash flow that flows from that bookings over the coming months.
Thank you for that. A follow-up, if I may. Working capital movement was at GBP 306 million positive impact in the second half of the year. Some of your competitors have delayed supplier payments in the summer months. Is there anything that you've done on supplier payments which is different from normal payments? Could that be a catch-up in Q1 or Q2?
You know what? Obviously, we had a huge amount of focus on working capital when the pandemic struck. Where we could, we worked in partnership with our suppliers, where there are a significant number of suppliers that aren't as impacted as airlines in the travel industry that were able to support us, particularly the fuel providers and maybe our IT suppliers, who were able to extend payment terms, and we're very thankful of that, and it shows their support of this business. They're the kind of things that we've done, and we continue to focus on that over the coming months. As I said previously to an answer earlier that Q1 we'll see a bit of working capital outflow based on the flying of Q4. Obviously, we'll be paying the costs associated with that from a working capital perspective.
Those discussions with our suppliers continue, and support is well received.
We'll now take our next question. It comes from Andrew Lobbenberg of HSBC.
Oh, hi, Andrew. Hi, Johan. Can I ask what your conceptual goal is around cost? I think you've rode away from committing to '21 underlying cost being the same as '19, I think. Are you aspiring to be the same as any competitor on your route? If you're nose to nose against a Wizz or a Ryanair, are you aspiring to have the same cost base there? What's your conceptual goal?
Yeah, sorry.
Can I come back to something Johan said about where you're attacked, you'll fight back. You'll attack back. You've also made a big stress about how you'll only do cash positive flying. I can see those two concepts being in conflict with one another. How are you going to defend yourself when perhaps some of your compadres are less sensitive about only cash positive flying?
It's a balance that we're going to strike. We're not going to allow very valuable positions that we have today to be deteriorating. That's not the case. Ultimately, if that means that we need to add on frequencies, in the short term in order to do so, we will do so. It's a balance that you got to strike to make sure that you, on one hand, doing what is right in the imminent part of what we're going through, but at the same time, you're not going to do something that means that you're going to lose out on something that the midterm and the long term is right for the business to do. That's a balance that we're always looking at to do.
I think there's been examples also where we met up and built back and fought back, and we've seen that competitors have withdrawn when that's been taking place. We've been able to demonstrate we can fight and compete with everyone that is out there. The key core focus of what we do is that we want to do cash generative flying as we're coming through this. Is somebody going to try to take advantage on the fact that we're having that principle? I don't think that that is necessarily the case. I think the case is for almost all the airlines out there that they need to do essentially what we've been trying to do to manage through this scenario. Trying to take market share in an environment where there's so little flying taking place, that's almost irrelevant at this point in time.
The important thing for us is that we keep building on the midterm and the long term on the positions that we're having, the leading airports that we're having, where we have future potential also to grow. That's what we're going to do. On the cost, conceptually, Andrew, I think it's more about the fact that we know that we have a cost advantage on the routes that we're flying, on the primary airports where we are in. I would like to see that our cost position is improved relative to others. That's, of course, down to the actions that you take and that we take, and we compare it to what others are doing. If you would ask me conceptually what I would like to see, is to see that we have a cost position that is relative to others improved, and to be more competitive.
Our next question comes from Johannes Braun of Stifel. Please go ahead.
Yes. Hi, good morning. Just one question, actually for me on the union talks. You mentioned that you now have agreements in place in the U.K., Germany, Netherlands, and Portugal. Firstly, have they all been in line with what you are shooting for? So the 30% reduction in staff, 20% productivity increase. Secondly, what about the other countries like France, Spain, Italy? What are the sticking points there?
On the first part of the question, it is a discussion and it's a negotiation. I think it's been in large part very constructive that we reached the agreements that we have done in places where we have concluded. We are having talks and discussions all across the network. We are not excluding any part in terms of the company that we are reviewing and that we're speaking to our employee partners and unions about as well. That is something that is an ongoing discussion with them, and we'll come back and do more updates as we go through this. There's not any part of the company that will be excluded from having a review, and that's where discussions are taking place.
Our next question comes from Gerald Khoo of Liberum.
Morning, everyone. A couple from me. You talked about making the cost base more seasonal. I'm just wondering whether you could give an indication of what sort of % flexibility you have in costs with the seasonal contracts, whether you want to talk about how that works under the contract or contract basis, or what the impact is overall, and how do those contracts work with respect to staff? I was wondering whether I could draw you on to say something on forward bookings. Presumably, the booking curve is still closer in. How has that changed over the past three to six months? Has it continued to shorten? Has it stabilized? Where are you in terms of forward bookings at present compared with this time last year, please?
We're not giving any other guidance on forward bookings other than to say that we are ahead of the bookings for next summer compared to the time of last year at this time. I think it's fair to say that it's very dynamic. We've given you the examples of when the Canaries was removed from the quarantine, up almost 900% Portugal. We've seen huge increases also in easyJet holidays. Even to the point where just the news of the vaccine comes out, we're seeing people that are being more optimistic about making the travel plans for the future. We see close to 50% increase in last week since that vaccine came out. I think, once again, one of the key things that we set out very early on is our ability to ramp up very quickly.
That example I gave about 180 seats that we were adding onto the market for the Canaries, that was more than any other, I believe, airline added on there as well. We always have that in mind that while we've been realistic about where we think capacity will be, we're not going to lose out in terms of taking a lead in the recovery when it comes. You don't want to do it the other way around. If you're overestimating what the demand will be and you have increased your cost base in order to accommodate that, and then you need to pull back the capacity that is out there, that's not very helpful. That's been a key thing for ourselves as we're going through this year and as we also will go through this next phase.
What was the seasonal basis?
Seasonal basis. Basically, it allows us basically to take the cost where the demand is, and then also clearly when we have lesser demand in the winter as an example, we won't have people there, and we won't pay for that cost. That gives us a better flexibility to adapt basically the cost base to the demand.
Our next question comes from Rishika Sabnani from Barclays.
Hi, good morning. A couple of airport-related questions, if I may. You mentioned airport deals. Could you give us a sense of what proportion of your airports are willing to offer these deals at the moment? If there's any difference between what you're seeing from primary airports and primary locations versus secondary ones? My second question, yesterday we saw that you had sold your slots at Stansted to Ryanair. Can you give us a sense of if there are any more monetizable slots and if that's part of your plans? Also on the other hand, if slots come up for sale in some of your core airports, would you be interested in buying any? Thank you.
I'll take those. Airport-related deals, look, it's an ongoing discussions with those. We managed to get some good deals in the start-up in the summer. Clearly they are as incentivized to get as many passengers through their airport as we are. We managed to get some good deals there, and longer term deals are currently under discussion based on allocation of aircraft and other measures that we're discussing. From a point of view, we clearly operate in more regulated airports than maybe others, and we're having discussions with those, but we're also having those discussions on a bilateral basis with those who aren't regulated. That's an ongoing piece of work, but it's one of the key areas of focus for us this coming year, as it has been over the last few years.
With respect to slots, look, we announced that we were coming out of Stansted. It was an opportunistic disposal. We do slot transfers and on a seasonal basis, on an ongoing basis, we'll continue to do that, but we've got no current plans to sell slots now. Clearly, a lot of our slots are extremely valuable, but, as Johan said in the strategy piece, that we are intending on protecting those valuable locations in our network strategy. Again, it was very opportunistic for us.
Our next question comes from Carolina Dores from Morgan Stanley. Please go ahead, Carolina Dores. Your line is open. It appears we have lost Carolina. We will take our next question. It comes from Neil Glynn of Credit Suisse.
Good morning, everybody. If I could ask two, please. The first one on the ground handling side. Just interested, can you quantify what proportion of your contracts have you actually renegotiated or tweaked at this point to give us an understanding of how far through that process you are? The second question, it dwells on tour operator vulnerability, and obviously, Johan in particular, I guess a market you know very well. Just interested, as you look towards for 2021, is there any scope for easyJet to sell more of the summer seats next year than it usually would to tour operators who could perhaps use additional third-party lifts as they seek to plan restructurings? Just interested in your thoughts on whether that's an opportunity.
Yes. It is. You're absolutely right on that. I think that the timing of easyJet holidays, who we announced a year ago, in itself is very timely because what has happened out there is that you're seeing that there's a huge demand from hoteliers trying to distribute the product that is out there. If you're looking at the network that we have flying to more leisure destinations than anyone else is doing, that actually easyJet holidays is benefiting from it. It gives us a tremendous advantage. The other thing that I think that hasn't been noticed so much is that in terms of the exclusivities, the exclusivity arrangements that hotels have had with tour operator, that is very much being reduced.
Which is great for us because that gives us more the opportunity to go in and take on and have the ability to sell some of these good hotels that is out there. With the fact that we have such a flexible and low-cost base within easyJet holidays benefiting from that existing network, it's a great opportunity. I think also from an airline point of view as well, look, we're going to be able to accommodate and provide capacity and seats for the ones who might be out there and looking for opportunities also to grow there. We believe we can do both, in terms of what easyJet holidays can provide because of its size and because of the direct contractual arrangement that has with hoteliers. At the same time also, allow the airline to grow on the back of demand from other players.
With respect to ground handling, I think it's fair to say Peter Bellew joined and hit the ground running in that area. We've done a very good proportion of our ground handling as contracts have been reviewed, with the help of the central procurement team, which done a great job. The key areas are fundamentally around re-tendering, obviously, specification, they've reviewed a number of specifications of existing contracts, and we've shifted slightly more weighting towards open book contracts, as we have with DHL and Gatwick. That aligns symbiosis of cost challenge, so effectively, any cost savings are saved between the two of us. Getting alignment on that is really important to us. A huge amount of progress has been made, and all credit to the team involved.
We have time for one more question today. Our final question comes from Alex Paterson of Peel Hunt.
Morning, everybody. Could I just revisit a couple of areas, please? Just on re-bookings. I'm assuming that they were low in prior years. I wonder if you could say how the summer 2021 bookings, the future bookings look, if you were to strip out those re-bookings, please. Secondly, just on staff costs, have there been any pay reductions for staff? I know some of the other airlines, which were pretty competitive in terms of cost base, have reduced FTE numbers, but also put through pay reductions for a temporary period. I'm just curious how you will be more competitive, relative to those if you're not doing that. Thank you.
The big gain for ourselves has been the right sizing of people to the company in order for us to increase productivity gains. That's the key thing. The key for us is productivity, and it's also key to manage that seasonality that is in there. Like I said, we're continuing to look at and review our cost base versus others and where others are coming out, and it's very clear that, as I said, we want to come out of this in a way that we are competitively in a better place on a relative basis versus others going forward. The cost program is not something that has launched and now we're done with everything. We need to continue to look at everything we can do in order to make sure that we achieve the goal that I spoke about.
The-
Bookings split between re-bookings.
We haven't split out the difference between what is the rebooked planes for next summer, versus what is a new booking. I think it's fair to say that it's been a good momentum throughout this last couple of weeks in here for the next summer.
We have reached the end of the questions and answer session. I would like to hand the call back to Johan for any additional or closing remarks.
Yeah. No. Thank you all very much for joining us today as well. It's been a very difficult year, as you can imagine, but I'm immensely proud of everybody who's been working really tremendously throughout this period to get us in the position where we are. We're taking swift and decisive action to reduce cost, managing the cost burn, getting access to liquidity. Keeping in mind that not only are we going to manage through this part of the situation that we're in, but also come out of this in a stronger fashion. I believe with the foundations that we have and in terms of what will happen when the recovery bounces back, we're going to be in an exceptionally strong place to do so. Thank you very much for listening in and look forward to seeing you at some point shortly. Thank you.