easyJet plans to undertake further capacity cuts

Saturday, November 7, 2020

Low-cost carrier easyJet recently mentioned that it is now expecting to fly no more than 20% of planned capacity over the next three months. The decision arrived after France, Germany and the U.K decided to reintroduce stricter measures to curb the spread of the growing number of COVID-19 cases.

At the same time, easyJet also confirmed the sale and leaseback of a further eleven aircraft with two counterparties. The transactions generate total cash proceeds of approximately £130 million. Ten A320 family aircraft were sold to ACS Aero 2 Beta. 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% of the fleet.

The airline mentioned in a recent statement that it has decided to stay 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 they notice a return of demand return.

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