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Last Trade - 14/05/21

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Market Cap £67.37bn
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UPDATE 1-EasyJet defers Airbus aircraft deliveries

Tue 22nd December, 2020 8:13am
(Adds detail)
    LONDON, Dec 22 (Reuters) - British airline easyJet  EZJ.L ,
whose finances have come under severe pressure during the
COVID-19 pandemic, has agreed with Airbus  AIR.PA  to defer the
delivery of aircraft, it said on Tuesday.
    European travel has been at very low levels for more than
nine months, forcing easyJet to take on more debt, tap
shareholders for cash and sell dozens of aircraft to boost its
finances to survive until flying recovers. Last month it
reported a 1.27 billion pound ($1.7 billion) loss.*:nL8N2I31AE
    The airline said the delivery of 22 aircraft will be
deferred from 2022-2024 to 2027-2028.
    In addition 15 delivery dates within the period 2022 to 2024
will move to more closely match forecast seasonal requirements.
    EasyJet said that under the terms of its 2013 agreement with
Airbus the future aggregate cash price of the aircraft subject
to deferrals will increase.
    The airline also had the option until Dec. 31 2020 not to
take up to seven aircraft scheduled for delivery between 2022
and 2026. 
    It has now agreed with Airbus to reallocate the aircraft to
which this option applies, to seven planes due for delivery in
2025 to 2026, with the deadline to exercise this option amended
to December 2021.
    The changes will result in easyJet taking no deliveries in
2021, eight in 2022, seven in 2023 and 18 in 2024.
    EasyJet has also retained options to increase its deliveries
in 2023 to 30 aircraft.
    "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," CEO Johan Lundgren said.
    Shares in easyJet, down 47% this year, closed Monday at
757.2 pence, valuing the business at 3.47 billion pounds.
    ($1 = 0.7453 pounds)

 (Reporting by James Davey; editing by Jason Neely)
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