EasyJet share price boosted by aircraft delay

Sunday, 22 Dec, 2020 0

EasyJet’s share price has risen on news that the airline has delayed the delivery of another 22 aircraft to conserve cash as the coronavirus crisis continues to depress travel demand.

The airline told the London Stock Exchange this morning that it will postpone the start of Airbus deliveries from October next year until 2027.

The timing of 15 additional aircraft deliveries due in 2022 to 2024 will be shifted to match seasonal needs, it said.

As a result, easyJet won’t take any new Airbus aircraft next year. Instead, it will take eight in 2022, seven in 2023 and 18 in 2024.

Its share price rose a little over 6% on the news.

CEO Johan Lundgren said: “This latest amendment to our longstanding agreement with Airbus reflects easyJet’s significant fleet flexibility as well as the benefit of highly attractive aircraft pricing. In this period of uncertainty, this flexibility is even more valuable, as it will enable us to quickly flex our fleet size in response to customer demand.

“EasyJet’s unrivalled European network of number one and two positions in primary airports, strong liquidity and flexibility will enable us to capture pent-up demand as customers return to the skies.”

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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