Easyjet has cut more than 1,400 jobs since the start of the Covid-19 pandemic, with more cost-saving measures on the cards as it hopes to claw back £40million a week this year.
The budget airline said revenues plunged 88% to £165million over Christmas - typically one the busiest seasons of the year for travel firms.
In a trading update on Thursday, it said passenger numbers dived by 87% on the same period last year.
The company said that its cost-cutting efforts, including reduced maintenance and 1,400 job cuts, had reduced its cash burn to £40million per week in a fully grounded scenario.
It comes after the airline warned of plans to axe 30% of its workforce last May.
The majority of easyJet's UK-based pilots are now on seasonal contracts.
In a further warning, bosses said the company expects to fly just 10% of normal services in its current financial quarter as coronavirus crisis restrictions continue to take a toll on travel.
The no-frills carrier told investors, in an update on its performance during the three months to December, that it saw "pent-up demand" ahead after March but, at the same time, admitted customers were leaving it late to book because of coronavirus uncertainty.
Johan Lundgren, easyJet chief executive said the aviation industry's fate now lies in the vaccine rollout.
"Our performance in the period was in line with management expectations, despite more stringent restrictions coming into place.
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"We have taken the right actions to emerge leaner with a reduced cost base and the retrenchment of legacy carriers at key airports will provide additional opportunities for easyJet.
"Our core strengths remain unaffected by the pandemic - we have loyal customers who know and trust our brand, an unmatched network, offer value for money and a leading position on sustainability with high customer satisfaction.
"The key to unlocking travel is going to be the vaccination programmes combined with governments progressively removing restrictions when it is safe to.
"And in the meantime, our flexible industry-leading policies mean that customers can make plans and book with confidence."
The update comes as Boris Johnson introduced more travel restrictions for passengers from this week.
New rules mean anyone trying to leave the UK must declare they have a valid reason with their carrier or airline. Those without a valid reason such as work can be sent home from the airport or fined.
In terms of inbound travel there are many different rules.
Anyone arriving in the UK must have a negative test result within 72 hours of their trip.
Everyone must also self-isolate for 10 days, unless they fall under a number of specific exemptions.
On top of this, travel is banned completely from 30 countries with new variants (mostly in southern Africa and South America) to the UK - unless you’re a British or Irish national or have residence rights in the UK.
Until now, British and Irish nationals who’ve been in these 30 countries in the past 10 days could return to the UK and self-isolate in their own homes.
But soon this specific group of people will have to quarantine in a guarded hotel. There is still no date for when this will happen.
