easyJet makes further capacity cuts as Covid-19 restrictions hit Europe

easyJet

Low-cost carrier easyJet has said it now expects to fly no more than 20 per cent of planned capacity over the next three months.

The decision follows from France, Germany and the UK in recent day to reintroduce stricter measures to tackle growing numbers of cases of Covid-19.

“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,” explained a statement to markets.

At the same time, easyJet confirmed the sale and leaseback of a further eleven aircraft with two counterparties.

The transactions generate total cash proceeds of approximately £130 million.

The cash sales proceeds were approximately £96 million, and the aircraft will be leased back for an average term of 58 months, creating lease obligations of approximately £67 million.

easyJet also sold one A320 family aircraft to JLPS Holding Ireland for cash proceeds of approximately £35 million.

On completion of these further sale and leaseback transactions, easyJet now retains 141 fully owned and unencumbered aircraft, representing approximately 41 per cent of the fleet.

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