EasyJet raises funds

Luton-based easyJet has sold 23 of its aircraft to financiers including a Chinese state-controlled bank for £608m in a deal taking the total it has raised to shore up its finances in the face of the Covid-19 crisis to £2.4bn.

Physically nothing happens with the airline leasing back the planes. 

At the present time easyJet has a fleet of around 340 Airbus 320 series aircraft spread around its three operating companies (easyJet UK, easyJet Europe and easyJet Switzerland) with now less than half parked.  It reintroduced flights out of Luton on 15 July but the latest British Government quarantine rules will, after the initial pre-deadline rush, probably mean a cutback of flights to France and the Netherlands.

As well as raising £600m of UK Government Covid loans, it has negotiated extra overdraft facilities and bank loans and raised money by issuing new shares.

EasyJet has long prided itself on its conservative financial structure in that it owns its fleet. However, it has had to relax that stipulation to raise emergency cash during what is the worst crisis the industry has ever faced.

The company said it would continue to review its liquidity position on a regular basis and assess any further funding opportunities.

Last night's imposition of quarantine measures on France will add further pressure to its network, particularly its popular routes for summer sunseekers into Marseille, Nice and Bordeaux. The airline only resumed limited flights to France on 15 June.

No comment yet from major shareholder Stelios Haji-Ioannou who has a habit of opposing any move by the easyJet board.

www.easyjet.com

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David Bentley, Manchester

After what the Chinese have done how can any self-respecting firm deal with one of their 'state controlled banks?' EasyJet just lost my business.