6th Nov 2020 11:37
(Alliance News) - easyJet PLC on Friday said it now plans to fly no more than approximately 20% of its planned capacity for the first quarter of financial 2021 due to the latest Covid-19 restrictions in the UK, Germany and France
The budget carrier also announced the sale and leaseback of 11 aircraft, netting the FTSE 250-listed company USD169.5 million in cash.
Ten of its A320 family aircraft were sold to ACS Aero 2 Beta Ltd for USD124.5 million and will be leased back for an average term of 58 months, creating around GBP66.8 million of lease obligations.
Additionally, it has sold one A320 family aircraft to JLPS Holding Ireland Ltd for USD45.0 million.
Over the terms of the leases, easyJet said, the average incremental net annual headline cost reflected in it's income statement will be around GBP6.4 million. This will be driven by increases in interest charges and depreciation.
On completion of the transactions, easyJet now retains 141 fully owned and unencumbered aircraft, which represent around 41% of its fleet.
"easyJet 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," the company said.
Furthermore, after the UK government's Saturday announcement of a second lockdown in England, as well as similar announcements from Germany and France, easyJet now plans to fly no more than around 20% of its planned capacity in the first quarter of its 2021 financial year. easyJet's first quarter ends December 31.
The airline said: "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."
Shares in easyJet were down 4.5% at 522.40 pence in London on Friday morning.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
easyJet