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EasyJet boosts cash reserves to £2.3 billion
EasyJet expects to boost its cash reserves to around £2.3 billion before the end of this week after securing £600 million from the Covid Corporate Financing Facility.
The airline has also issued a utilisation request to fully draw down on its $500 million Revolving Credit Facility, which is secured against its aircraft assets.
In a statement released to the London Stock Exchange this afternoon, the airline said: "Given the possibility of a prolonged grounding easyJet will continue to consider further liquidity and funding options."
EasyJet has reached an agreement with pilots’ union BALPA to furlough its flight crew from April 1, and last week it reached agreement to furlough its cabin crew and training instructors.
The airline, which has now grounded all of its fleet, will release a trading update in the second half of April and make a half-year results announcement on June 30.
CEO Johan Lundgren said:"We remain absolutely focused on ensuring the long-term future of the airline, reducing our costs and preserving jobs, to make sure easyJet is in the best position to resume flying once the pandemic is over.
"We are pleased that we have now reached agreement with both Unite and BALPA regarding furlough arrangements for UK-based easyJet pilots and crew.
"Our current priority is to safeguard short term liquidity, so we have borrowed from the CCFF and drawn down on our Revolving Credit Facility in order to increase our liquidity in the event of a prolonged grounding of the fleet.
"The CCFF provides businesses with access to funds at the commercial rates which were available before the coronavirus crisis and any UK company that had an investment grade rating before the crisis can apply for this funding."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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