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EasyJet agrees sale and leaseback of more aircraft as it cuts capacity further
EasyJet has said it will cut its flight schedule further following the introduction of new lockdown measures in England and parts of Europe.
The low-cost carrier says it will only run a maximum of 20% of planned flights for the rest of the year.
EasyJet made the statement after announcing it has completed a sale-and-leaseback agreement for 11 more of its aircraft, boosting its finances by a further £130.7 million.
The airline said the new lockdowns in England, France and Germany has forced it to scale back expectations for flight schedules.
In a statement, easyJet said: "Following the UK Government’s announcement on Saturday, as well as similar announcements in Germany and France recently, easyJet now expects to fly no more than c.20% of planned capacity for Q1 of Financial Year 2021.
"We remain focused on cash generative flying over the winter season in order to minimise losses during the first half and retain the flexibility to ramp capacity back up quickly when we see demand return."
Following the latest deal, easyJet now fully owns 141 aircraft – just 41% of its fleet.
The aircraft will be leased back for an average term of 58 months.
The latest deal comes 10 days after easyJet raised more than £305 million through the sale and leaseback of nine Airbus aircraft to two different parties.
At the time, the airline said it ‘will continue to review its liquidity position on a regular basis and will continue to assess further funding options, including those that exist in the robust sale and leaseback market’.
By Lisa James, Deputy Editor (UK)
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Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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