Earnings Call: H2 2020

Nov 17, 2020

Year 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, and good morning, and thank you for joining us to discuss the ECG's full year 2020 Soltz. And with me on the call are Andy Findlay here, our CFO, as well as Mike Gil and Holly from our IR team. You should have been sent to slides along with the statement, which are also available on our corporate website. I will talk you through the presentation and then follow-up with plenty of time for your questions. So 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 1,000,000,000 of pounds in liquidity since April 2020 from a diversified range of funding forces. Our year end liquidity position has increased by 1,000,000 compared to the end of March 2020. We still retain ownership of 55 percent of our fleet, with 37% remaining numbered. We have launched the largest cost efficiency program in ECG's history, taking out costs at every level. Of the business. And not only will this create a step change in our cost base, but it crucially would 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 airport 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 speak. And we continue to strengthen our lead by growing market share in the top 20 European leisure nations. And our trusted brand status coupled with improving customer satisfaction, which is up 14% year on years since customer choosing to fly with us time and again. And also with the proportion of seats booked by Returning customers increasing by a further 2 percentage points to 80% compared to last year. So taking all together, the strong liquidity we have with the leaner cost base providers with the firm foundations together 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. And that's why I believe that we firmly, we'll bounce back strongly as we come out of this situation. But before we go into that in more detail, I'm gonna 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. It's clear from this slide that the impact of COVID point 5 percent to GBP 55,000,000 seats and passenger numbers fell to GBP 48,100,000, 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 percent, which reflects the focus we have placed 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 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 7, total revenue decreased to just over 1,000,000,000 during 20 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 costs decreased by 49% reflecting the reduction in capacity. As a result of these factors, EastJet has incurred a headline loss before tax, of 1,000,000 compared to a headline profit of 1000000 last year. Non headline items amounted to 1,000,000 charge. The 2 large items within non headline were a million cost related 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 311,000,000 charge related to hedge discontinuation and ineffectiveness relating to the significantly reduced fuel requirement during the year as we enter into FY 2021. 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 had put into storage prior to their lease return. This led to a total group loss before tax of 1,000,000,000 compared to a 1,000,000 profit last year. Now moving on to the revenue per seat bridge, which reflects a year of 2 halves. As disclosed at the half year trading in half 1 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 rig maturity and RPOs, our 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 1, driven by good performance of 1st bag and allocated seating generating an incremental £1.16 revenue per seat. Clearly, the COVID pandemic had a very substantial impact on our RPS in half 2, with a negative £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 in scheduling 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 percent at constant currency as we achieved material savings across many areas of the business. Airline costs per seat at constant currency, however, rose materially, primarily as a result of the decreased capacity flown. Despite the cost savings taken at cost savings actions taken, the main area of cost per seats 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 time, straight line basis rather than a usage variable basis, so the charge is not reduced due to less flying. In CRE, we took decisive action to utilize European wide furlough arrangements and initiated the restructuring program to remove up to 30% of headcount. The benefits of which we saw at the tail end of the year, and we'll see in FY 'twenty one 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 1 off maintenance provision catch up from half 1. 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. So 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 US5.75 dollars per ton, a 13% decrease. Due to the fuel ground full grounding of the fleet on 30th March 2020 and the lower capacity thereafter, Easyjet became significantly overhead from both jet fuel and FX perspective. After taking into account our commodity and currency hedging, the sterling cost of fuel per metric ton was which is a GBP 31 or 6.8% increase compared to 2019. Moving on to foreign exchange, the euro rate fluctuated between between and during the year, And net net, there was a headline GBP 29,000,000 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 1 and half 2, went well on the movement in the 1st half, and we'll focus on the 2nd half cash flows to the right of the 2nd grade bar. Esjet took swift and decisive action to raise almost GBP 2,400,000,000 during the period from a diverse range of funding sources. The liquidity raised during the second half comprised GBP400 million from a drawing down of an existing revolving credit facility, 1,000,000 from 2 term loans, 1,000,000 for the UK government's COVID corporate financing facility, a net 1,000,000 in sale and leaseback transactions and a net 1,000,000 in new equity issuance. Since the end of the financial year, sale and leasebacks of a further 30 aircraft have been transacting. Transacted, raising an additional 1,000,000. 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 whilst also enhancing our robust balance sheet to provide a significant liquidity buffer as we enter winter. Our cash position at 30th September 2020 of GBP 2,300,000,000 is more than double the average level over the prior 3 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 1,000,000 during Q3 was reduced to 1,000,000 during Q4. Working capital movements in half 2, excluding refunds, were positive, reflecting strong management in this area. And cash refunds paid to customers in half 2 totaled GBP 863,000,000, unlike many of our competitors, During the pandemic, Egypt 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 1,000,000 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 almost GBP 1,000,000,000 higher than at the end of March. This brings us on to 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 1,000,000. 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 1,000,000 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 And looking at cash, our EastJet ended the period with 1,000,000,000 in cash and money market deposits compared to 1,000,000,000 in 2019, having successfully raised liquidity as discussed on the previous slides. Net debt increased to 1,000,000,000, And as at 30th September, our liquidity position was GBP 4,000,000 per 100 seats, representing a material headroom compared to our target liquidity buffer of GBP 2,600,000 per 100 seats. Moving on to our fleet plan, the deferral of GBP 24 aircraft deliveries from Airbus 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. 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. So just to explain the graph, the top dotted line in this chart illustrates our current maximum arrangements with Airbus as well as current lessors. And 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 EZJet 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 FY 'twenty one, EZJet will be storing 8 leased aircraft on behalf of their respective lessors. These are held 0 rent and less flown and are therefore not included within the CHF 302. Slide 14 summarizes our expectations for gross CapEx over the next 3 years. This doesn't take into account any sale in leaseback proceeds. In FY 'twenty one, we expect to spend around 1,000,000 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 600,000,000 to GBP 800,000,000 and to be in the range of GBP 600,000,000,000 to GBP 1,000,000,000 in financial year 20 3. The broad range of CapEx out 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 currency effective hedge positions. As we've already discussed, there was a 1,000,000 charge relating to hedge ineffectiveness due to east jet significantly over hedge 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 USD 605 per metric tonne and our expected FY 'twenty two jet fuel requirement is currently around 44 percent hedged at $4.90 per metric ton. With that, I'll now hand you back to Johan. Thank you very much for that, Andrew. So we have been decisive in meeting the challenges of the coronavirus through delivering over SEK 3,100,000,000 of liquidity from a diverse range of funding sources, including the announcement to be done today with further sale leaseback transaction. We've launched the largest cost efficiency program in EZJazz 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 UK, Germany, the Netherlands and Portugal. Maintaining strong control of the cash burn throughout H2 in 2020, remaining extremely disciplined and focused on flying which rise to positive contribution as delivered cost savings as expected. And then also maintaining a high level of flexibility, as Andrew talked about here, in our fleet plan while reducing CapEx. So moving on to Slide 18. Let me just demonstrate how response to VC that has been to some of the rapid spikes in demand when restrictions has been removed. So when restrictions were lifted for UK travel to the Canary Islands last month. We were able to add 180,000 seats, just within 24 hours. And the first departure is 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 capturing the existing demand, but in stimulating even more through immediate updates to our homepage app emails and social media targeting 8,500,000 consumers. And the response was tremendous. We had an increase in sales. So 876% over the following 5 days. So 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. And this was seen most recently canaries where demand was significantly higher than that experience when Portugal came off the warranted list weeks earlier. And this shows that the pent up demand So moving on to Slide 19. We talked many times before about the Easyjet's structural advantages and never have they been more valuable than now. Our network are number 1 and number 2 positions that 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 business model is primarily focused. This is also where we have reason to grow our share in key leisure markets that matter with a 9% increase this submarine key leisure destinations and the announcement of 2 seasonal bases in Malaga and Faroo. And not only do we have the leading positions in Euro Save mers 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 ECD compared to other airlines. And despite the challenges of the COVID and the resulting restructuring, 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 1st choice brand in most of our home markets. And that sustainability is becoming even more important for consumers when choosing brands. And Easyjet is a clear industry leader with its efficient operation carbon offsetting and focus on future technologies. And finally, we have a significant cost advantage versus our competitors in the primary airport, which we serve. The restructuring we're undertaking is further strengthening that competitive advantage as our cost base becomes more flexible and seasonally aligned. And these structural advantages give us the best foundation up onto which we can build for the recovery. And I'd like to talk to you more about these in little bit more depth. Moving on to Slide 20. As we discussed before, Easyjet has 55, number 1 or number 2 positions in key airports across Europe, with number 1 and number 2 positions in London, Paris, Berlin, Milan, Amsterdam, Geneva, Manchester, Leon, Barcelona, many more. These are big, populous wealthy catchment areas with more than 300,000,000 people living within an hour's drive of an Easyjet airport. This network is not only provided competitive advantage, but it cannot also be easily replicated. The scale of our operation in these cities provide us with a 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. And 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 particularly, we will see further bolster our leading positions in Western Europe's top leisure destinations, adding new basis 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 would also look to expand in an opportunistic but disciplined way through a list of focused cities. This is a low risk way of serving large origin markets creating a leading offer without necessarily basing assets there. Slide 22. EasyD's business model is the foundation for us to bounce back strongly. And as you can see, short haul travel is already recovering more quickly from the pandemic than long haul. Shortly 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 1 fly for leisure with the opening of Malaga and Faroe a seasonal basis. And our airport capacity there our capacity share at the top leisure, the 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. Easy at holidays, The packaged market holiday is also expected to benefit from an early recovery. Easy that holidays has also seen increasing demands is when countries are removed from quarantine restrictions with a growth of 308% in bookings when Portugal was removed in July, rising to 5 52% in October with the Canneos removal and 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 the EasyJet holidays bookings are significantly above previous years at this point. As well as being well placed to capture leisure demand, metologist 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. The flexible model without commitments enable us to be able to offer the destination hotels that customers want, not those being sold to fulfill financial obligations like traditional tour operators. The low cost base of the airline support our value proposition, using external price comparison data on like for like searches easy that holidays offers the best value on 75% of all holiday search and within 93% variable cost base the business can adapt quickly to future demand. And with the repositioning of our holidays offering through direct contracted hand picked hotels, we've been able to increase the average booking value by circa 70% compared to previous outsourced model. Key to leisure travel success in the future will be customer flexibility. Our leading protection promise offers the best price guarantee full payment on the 28 days before departure and fee free changes in cancel without losing money. Let me talk to you about our 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 the this business is built upon and the right people as to do an easyJet will make the difference. On our aircraft, I believe we have absolutely the best crew. There is guys. And 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. But 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 today and we 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 it's well understood providing ease and value. And 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. An 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 UK, France, Germany, Switzerland and Italy, and 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. And 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 at solute to crucial. Over the course of the pandemic, our largest ever cost program is resetting our cost space 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 easy that went through a decisive list of actions to deliver a rapid cost out program that included utilizing deferral schemes available across Europe for all crew and M and A staff, renegotiate in the fleet deal, and aircraft deliveries deferring non essential maintenance and aircraft storage. And as part of our cost efficiency program, we've been able to right size 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 2 year pay freeze agreements with unions in 6 countries and 10% of our UK headcount has moved to seasonal contracts date with the agreements also including changes to the work patterns and the 30% reduction in M and A staff. Finally, the program is also focused on delivering structural efficiencies that will drive long term cost savings. And this would include targeting a crew productivity improvement of 20 percent, 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 EU261 costs. Airport deals focus on growth and volume, maintenance in sourcing and low cost contract extensions, and a fleet allocation and fuel saving program that drives efficiency and supports our sustainability agenda. I want to talk about sustainability. Easyjet is the world's only major airlines who started offsetting 100 sent to the CO2 from our flights and our ground operations on behalf of our customers. Since then, we have retired over 3,000,000 carbon credits on high quality schemes certified to the international respected VCS standard or gold standard. These schemes also have a 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 Niger airplanes, which are 15% more carbon efficient than the aircraft that they replace. And during the Lentus bad news, of the pandemic, one positive strand on 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 have been unimaginable just, you know, some years ago. Our own partnerships with Right Electric And Airbus has also seen exciting developments particularly the Airbus announcement in September of their plan to launch a 0 emissions hydro empowered plane by 2000 and 35. And 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 0 Council set up by the UK government this year and tasked with making net 0 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. Sustainability governance has been strengthened with sustainability now, a regular focus at the PLC board at A And B and also at a dedicated clearing committee. Moving on to Slide 28. And despite the pandemic, we have not lost sight of the commitment that we have sustainability, not only decarbonization, a fundamental challenge for the industry, but we also know that this is of increasing importance to our customers. 72% of consumers says 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 and likely to choose EasyJet over another airline when the customer is aware of our carbon offsetting policy. We've 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. ECG has expected to fly no more than circa 20 percent of the planned capacity for Q1 financial year 2021. European Softwaver 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. And we'll retain the flexibility to ramp up capacity quickly when we see demand return. And 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. So 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 CC Jet 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 best in this industry. This is what this company is built upon. And we know that customers will return. And when they return, we know the underlying will definitely be there. And we will see also pent up demand that is increasing also as we speak. And crucially, we retain the agility and the flexibility to rapidly ramp up to capture and serve that demand Thank session. And we'll now take our first question. It comes from Daniel Roeska of Bernstein Research. Please go ahead. Good morning, Johan. Good morning, everybody. Please, if I may, then, number 1, if you only fly cash positive flights. I mean, 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 outlook of what you expect in terms of cash. Or could you kind of let us know a little bit what the downside risk to that view would be kind of saying that the cash burn cannot get worse into your Q1 and 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? And what actions could you, you know, still execute to maintain your investment grade rating into next year? And then lastly, maybe on your initial comments, Johan Singh, a winning airline exiting the COVID scenario, I'm just trying to reconcile how are you planning to capitalize on the opportunities that you've seen in the market with a shrinking fleet. Does this mean you'll retreat from some market and kind of concentrate on others, just how you're thinking about kind of capitalizing on the opportunities with your current fleet plan? Thanks. Thanks, Dennis, for that. I'll start with question 3 and then Andrew, you can do the 2 other ones. I mean, 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, that has taken place in previous downturns. So 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 in the holidays is going to recover quickly than business. You're going to see 2 things that are 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. So what we have done and what we set out to do very early on then, it 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. And we can also see that we have the opportunity a lower number of the fleet. And that's why it was so important at the start of the pandemic when we we had our discussions with Air, but 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. But we have also, you know, 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. We're 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 get flexibility in the fleet, knowing that the parameters that I said early will come and they will happen. And I can't think of another airline that would be a better place to capture on that. Look, we've been, we're going to have the opportunities to grow when we see we grow, but we'll only grow when we can see that it's profitable to do. And in the cases where somebody wants to attack us, we will attack back. It's the way it is. And that's what we're going to do. And 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 what we were going into this crisis. Hope that answers any questions. What's your lead time to kind of getting from the, let's say, 302 aircraft which your base plan is to the 322? I mean, how fast could you potentially switch directions if you wanted to? Let me answer that one, Daniel. I'll answer the other 2 as well. Let me go back to the first couple of 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 Q3, Q4, and we haven't given any further guidance on that, but, rest assured the cost actions we've taken and the working capital actions we've taken are all around mitigating 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 wouldn't, I mean, speak to 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. And 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, From a point, we have a plan to get down to 302, as we speak today for FY 'twenty one. Now as we said, we retain the upside flexibility to, to grow, if the demand comes back better. But I think it's fair to say our ability to flex is significant. Not only have we got significant proportion of our fleet, our leases, where we can choose to extend or not extend, that's the majority of the of the reduction that you see in the bottom side of that fleet graph is a result of, of termination of leases. We have the ability to extend them. Let's face it lessors would love to have us as a covenant as an extension to their leases. Plus, we're in a conversation with Airbus around exactly how many aircraft we're going to buy over the coming year. We've got flexibility there as well. We'll say the next question, operator. We'll now take our next question from Jared Castle of UBS. Thanks. And just exploring some of those topics further, can you give an update where your actual liquidity is as of now, because obviously you've done, some sale and leaseback, you know, post year end. So, you know, that, that, that will be useful. And then just on cost control, where are we in terms of overall group targets? I think few months ago, it was potentially, you know, 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 the cost, but this is the largest, most comprehensive program on cost that Easy Debt has ever launched and will deliver. And this is going to reset the cost base of what we do. And we have very ambitious targets, as you could imagine, also internally, but I think that there's still too much uncertainty out there in the environment for us to come out with targets on this, but it's a massive focus for ourselves. And by resetting the post cost base and then also, giving us now the opportunity to match the seasonality with the agreements that we have with unions is gonna give significant advantage to where we were before, as an example. So 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. So 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 airport seg we serve. Yes. On liquidity, clearly, I can't answer the question regarding where we are liquidity today, depending on what's in the R and S, as you know, that we're at CHF 2,300,000,000 cash at the end of the year and the end of the year, we've raised a further 700,000,000 on SLBs, hence the 3,100,000,000 raised. That's all I can say I'm afraid. Our next question comes from Sabi Syth of Raymond James. Please go ahead. Hey, good morning. I realize this is not guidance, but I was wondering what level of activity is this when indicating that you're 77% hedged for fiscal year 'twenty one and 'forty four percent for fiscal year 'twenty two. And then for my second question, if I might ask that Danielle sessions slightly differently. If you compare it to kind of the September quarter, in the December quarter, what are kind of the tail headwinds and tailwinds from a cash burn standpoint, I realize that it's kind of lower activity, lower sales, but are there any kind of catch up payments or anything we should be aware of that's different in 4Q in the December quarter, which is the 2nd quarter. Thanks. First question, I didn't quite hear it. Sure. Sorry. So the first question, just kind of curious, what level of activity is assumed in that hedge guide? I'm just kind of curious so that I know what level of fuel is actually hedged, for fiscal year 'twenty one and fiscal year 'twenty two? Yes. So on the hedge, but they're based on our estimates as 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'll give you guidance on what we expect to fly for the full year, but 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, but 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 focus, the key, there's key drivers on cash flow obviously around bookings. And 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 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 flight that you've done in the Q4 period that you'll see in Q1. So there are, there are kind of the 2 big swings in the Q1 period that you might not get swear in the in the year. Hope that helps you. Our next question comes from Stephen Furlong of Davy Research. Please go ahead. Good morning, gentlemen. Just back two questions, so back to cash and cost. So, how important would you say calendar Q1 is on the, Cash inflows, usually significant period for cash for the summer bookings. And do you model that relative to previous years before you decide whether you need older liquidity actions, particularly with Easter coming up. I know on 4th April. 2nd point, maybe just on cost. I mean, I guess, is there a certain size? I mean, the previous guidance given back at the in terms of flat, it should cost by 2021. Am I 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 in general, even qualitative costs would be good. Thanks a lot. So I'll take the answer. Thanks, Stephen. So 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 the point of journey. And we'll keep a very close eye on that, but Q2 is typically where you start to see the ramp up into that Easter, an early summer period. With respect to, costs, again, we're, to a certain extent, we are not as focused on cost 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 the view to getting this business really efficient. And also 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 in partnership with our unions to improve the seasonality of our summer versus winter cost phasing through, agreements of part time, pilots within the UK. 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, into our budgets and task for the whole team. So the whole team is geared up, ready to deliver on the, the cost savings that we talked about today. Our next question comes from Jamie Rowbottom of Deutsche Bank. Good morning, everyone. 2 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. And despite your responsiveness to date, I'm guessing that percentage would be some way below 100% of pre virus levels. And then 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 2020 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 300,000,000 of the CCF loan? Is that bond issuance perhaps Thanks. I'll do the first question I'll ask. 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, then then, you know, anyone 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. On cash, cash outflows, with respect to the restructuring charge, as you know, we took CHF 123,000,000 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 provision position regarding the restructuring is about CHF 100,000,000. So we still got a fair amount to, to go on that, and that's all baked into our cash outflows. For fiscal 2021. And clearly, you know, discussions are underway with number of our European colleagues And we, frankly, we hope to be in a good position with regard to that, that, that cash outflow as we were in the UK with respect to the fewer redundancies we made. With respect to the hedging, that's an ongoing rolling. So the ineffective hedging charge, a GBP 311,000,000 in the year, that's a rolling, cash outflow and it occurs, when the hedges are closed down. So effectively, we have to take the P and L charge and that that rolls through. Clearly, some of that, a fair proportion of that would have, reflected, would have been relating to the Q4 period in the prior fiscal year. The remaining amount predominantly is related to the Q1 financial year this year. And just slightly over into Q2, but that's kind of the timing of those. And with respect to the CCFF, you know, this is all around capital management in a sense that we're, from our perspective, we've got to win 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 CTFF and we continue to assess all funding options should the need arise in the future. Our next question comes from James Holland of Exane BNP Paribas. Hi, good morning. Just one for me, actually, on the sort of seasonality and flexibility in the staff cost base, I think it's pretty important strategic update. It said 10% of staff will be on seasonal contracts. I assume that includes pilots, Romania's pilots. I was just wondering what the right number is on that in order to be sort of have the flexibility you want. Is it 10% or should it be more? So secondly, is that something you expect to be able to keep long term? Obviously, as things normalize, I suspect unions and pirates get a little bit less interested in that plan. And then just finally where we are on staff cuts, you're still targeting up to 30% running where we are now. 30% is still the expected number? Thank you. Yes, much for that. Yes, you're absolutely right. I mean, 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's a productivity improvement that we target about 20% on on what we're doing. So I think that's really a step change from something that, has long been an opportunity for ourselves that we now manage you achieve. I think it's also in terms of when we're looking at the impact and the redundancies we've been discussing in engaging, I think, constructively with our union partners that's got to get us into a good place. And there are, some of those things are concluded. But we are also looking and are in discussions also continuously throughout the whole of the network also, and we will not stop looking at things that is, you know, 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, But you know, 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 Monika Kayani of Bank of America. Please go ahead. Good morning, everyone. Just wanted to ask on the vouchers of $250,000,000, how does that compare with your bookings right now? And then we've seen press articles mentioned that you're speaking with the European Governance on funding. Can you please give some color around that? I'll start with the the last part of the question. So we're discussing with, European Governance 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. And we have received also support in terms of mostly in the shape of the furlough schemes that is out there. But 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. Hello, on the vouchers question, yes, $250,000,000. Actually, we believe it's a very low number. It's a good position to be in in a sense that even If you compare it to FY 'twenty's revenues, it's less than 10% of the revenues. Obviously, we can't comment on what we expect that to be for bookings, given we haven't disclosed our booking position for the the coming financial year, but clearly having a relatively low level of vouchers and the fact that we paid GBP 863,000,000 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 beside me. Working capital movement was a $306,000,000 positive impact in the second half of the year. And some of your competitors have delayed supplier payments in the summer months. Is there anything that you've done on supplier payments, which is kind of different from normal payments and 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. And where we could, we worked in partnership with our suppliers, where, you know, there are 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 we're able to extend payment terms, and we're very thankful of that, and it shows their support of this business. So 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 will see a bit of working capital outflow based on the, the flying of Q4. Obviously, we'll be paying the costs associated with that from a working capital perspective. But those discussions with our suppliers continuing support is well received. And we'll now take our next question. It comes from Andrew Lobbenberg of HSBC. Oh, hi, Andrew. Hi. Hi, Johan. Can I What your conceptual goal is around cost? I think you've rode away from, you know, committing to 'twenty one, underlying cost being the same as 'nineteen. I think But I mean, are you aspiring to be the same as any competitor on your route? If you're nose to nose against the whistle or Ryan, are you aspiring to have the same than cost base there? Or what's your conceptual goal? Then can I come back to something Johan said about where you're attacked, you'll fight back, you'll attack back? But you've also made a big stressed about how you'll only do cash positive flying. And I can see those 2 concepts being in conflict with one another. How are you going to defend yourself when perhaps some of your compatories are less sensitive about only cash positive lion? So, I mean, it's a balance that we're going to strike. I mean, we're not going to allow very, valuable positions, that we have today to be deteriorating. That's not the case. And ultimately, that means that we need to add on frequencies. And in the short term, in order to do so, we will do so. But 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 the long term is right for the business to do. So that's a balance that we're always looking at to do. But I think there's been examples also where we have we met up and built back and fought back. And we've seen that competitors has withdrawal and that's been taking place. So we've been able to demonstrate we can fight and compete with everyone that is out there, but the key core focus of what we do is that we want to do cash generative flying as we're coming through this. You know, is somebody going to try to take advantage on the fact that we're having that, that principle, you know, 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, to 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, you know, on the midterm and the long term on the positions that we're having, the leading air that we're having, where we have, you know, future potential also to grow, and that's what we're going to do. On the cash, on the cost, conceptually, Andrea, 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, of course, where we are in. I would like to see that And that's, of course, down to the actions that you take and that we take and we compare it to what others are doing. But if you would asked me conceptually, what I would like to see this 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 Johan Sbrown 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 UK, Germany, Netherlands and Portugal? Firstly, have they all been in line with what you are shooting for? So the 30% reduction staff, 20% productivity increase And then 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. It's a negotiation. I think it's been in in large part, very constructive that we reached the agreements that we have done in places where we have concluded and we are having talks and discussions all across the network. And we are not excluding any part in terms of the company that we are reviewing and that we are speaking to our employee partners and and unions about as well. But that is something that is an ongoing discussion with them, and we'll come back and do more updates as we go through this. But they will there's not a it's not any part of the company that will be excluded from having a review and and that's where discussions are taking place. Our next question comes from Charles Ku of Liberum. A couple for me. You talked about, making the cost base more seasonal. I'm just wondering whether you could give an indication of what sort of percentage flexibility you have in costs, with the seasonal contracts, whether you want to talk about how that works under the on a contract or contract basis or what the impact is overall and, yeah, how do those contracts work with the second staff? And I was wondering whether I could draw you on, say something on forward bookings, presumably the booking curve is still closer in. How has that changed, over the past sort of 3 to 6 months? Has it continued to shorten? Has it stabilized? And 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 booking for next summer compared to the time, of the last year at this time. I think it's fair to say that it's very dynamic I mean, you you we're giving you the examples of when the canaries was removed from the quarantine up almost 900% Portugal We've seen huge increases also in easy debt holidays. And even to the point where just the news of the vaccine comes out, we're seeing people that are are being more optimistic about making the travel plans for the future. So we see it close to 50% increase. In last week since that vaccine came out. And I think once again, one of the key things that we set up very early on is our ability to ramp up very quickly. You know, that example I gave about 100 eighty seats that we were adding onto the market following the conveyors, there was more than any other I believe airline added on there as well. So 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, but you don't want to do it the other way around. If you're over estimating 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, but that's not very helpful. So that's been a key thing for ourselves as we've gone through this year. And as we also will go through this next phase. So what was the seasonal basis? So basically, it allows us basically to take the the costs 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. So that gives us a better flexibility to adapt basically the cost down cost base to the demand. Our next question comes from Rishika Sabiani from Barclays. Hi, good morning. A couple of airport list 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? And if there's any difference between what you're seeing from Primary Airports And Primary locations versus secondary ones. And then my second question, yesterday, we saw that you had sold your slots at Stanford to Ryanair. Can you give us a sense of if there are any more monetizable slots and if if that's part of your plans? And then also on the other hand, if stocks come up for sale in some of your, core airports, would you be interested in buying any? Yes, so I'll take those. So, airport related deals look, it's an ongoing, discussions with those. So we managed to get some good deals in the startup in the summer. Clearly, there is incentivized to get as many passengers through their airport as we are. So 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. So 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. So that's an ongoing piece of work. 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 took, we announced that we were coming out Stansted. It was an opportunistic disposal. You know, we do slot transfers and on a seasonal basis on an ongoing basis. We'll continue to do that, but we've not got no common plans to sell stocks. 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 those valuable locations, in our, in our network strategy. So, again, it was very opportunistic for us. Our next question comes from Carolina Torres from Morgan Stanley. Please go ahead Carolina Doris. Your line is open. It appears we have lost Carolina. We'll take our next question It comes from Neil Glynn of Credit Suisse. Good morning, everybody. If I could ask 2, please. The first one on the ground handling side, With 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? And then the second question, it's evolved on tour operator vulnerability and obviously you'll add in particular, I guess, the 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 that they seek to climb restructuring. Just interested in your thoughts on whether that's an opportunity. Yes, it is. You're absolutely right on that. I think that the, I mean, the timing of EasyDIP holidays, you know, 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 products that is out there. And if you're looking at the network that we have flying to more leisure destinations than anyone else is doing that actually you see the holidays is benefiting from. 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 facility arrangements that hotels have had with Tour Operator, that is very much being reduced, which is great for because that gives us more of the opportunity to go in and take on and have the ability to sell some of these good hotels that is out there. So So with the fact that we have such a flexible and low cost space, really need you see that Autoliv is benefiting from that existing network, it's a great opportunity. And I think also from the airline point of view as well that, look, we're going to be able to to accommodate and provide, you know, capacity in seats, for the ones who might be out there and looking for opportunities also to grow there. We believe we can do both, you know, in terms of what easy deathologists can provide because of its size and because of the direct contractual arrangement that that has with hoteliers, but at the same time also allowed the airline to grow on the back of demand, from, from other players. So This is better ground handling. I think it's better to say Peter Belly joined and hit the ground running in that area. So we've done pretty, you know, a very, very good proportion of our ground handling as contracts have been reviewed, with the help of the, the central procurement team has done a great job the key areas, fundamentally around retendering, obviously, specification, they've reviewed a number of specifications of existing contracts and we've, we've, shifted slightly more weighting towards open book contracts, as we have with DHL and Gatwick and that align symbiosis of cost challenge. So effectively, any cost savings are saved between the 2 of us. So getting alignment on that is really important to us. So a huge amount of progress has been made and all credit to the team involved And we have time for one more question today. Our final question comes from Alex Patterson of Peel Hunt. Good morning, everybody. Can I just revisit a couple of areas, please? Just on rebookings, I'm assuming that they were prior they were low in prior years. I wonder if you could say how the, December 21 bookings and future bookings look if you were to strip out those re bookings, please. And secondly, just on staff costs, have there been any pay reductions for staff? I mean, 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 it? Thank you. The big gain for ourselves has been the right sizing of 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. And like I said, we're continuing to look at and review our cost base versus others and where others are coming out. And 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. So the cost program is not something that just that has launched and 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 what is that, the goal that I've spoken about. Bookings, split between rebookings. We haven't split out the difference between what is the rebooked things in for next summer. Versus what is in your booking, but I think it's fair to say that it's been a very, you know, it's been a good momentum, you know, throughout this, this loss couple of weeks in here for the next summer. And 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. Thank you all very much for joining us today as well. I mean, it's been a very difficult year as you can imagine, but I'm immensely proud of everybody who's been working, you know, really tremendously felt this period to get in the position where we are with taking swift and decisive action to reduce cost, managing the cost per, getting access to liquidity, but also keeping in mind also that we're not only going to manage through this part of the situation that we're in, but also come out of this in a stronger fashion. And 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. So Thank you very much for listening in and look forward to seeing you at some point shortly. Thank you.