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(Alliance News) - Low cost airline easyJet PLC on Tuesday said it has agreed with French aerospace firm Airbus SE to defer the delivery of aircraft that had been scheduled for the 2022 to 2024 financial years.
The total number of aircraft being purchased has not changed.
Shares in easyJet were up 5.2% at 796.60 pence on Tuesday in London, the third best performer in the FTSE 250.
A total of 22 aircraft will be moved to the 2027 to 2028 financial years, and there will also be the movement of 15 delivery dates within the 2022 to 2024 to match forecast seasonal requirements more closely.
easyJet's financial year ends in September.
As a result of the deferral, the future cash price of the aircraft being deferred will increase, due to a price escalation mechanism used to reflect market inflation in labour and material costs.
In addition, easyJet had the option until the end of 2020 not to take up to 7 aircraft scheduled for delivery between the 2022 and 2026 financial year. The group has agreed with Airbus to reallocate the aircraft to which the option applies, to 7 aircraft due for delivery in 2025 and 2026.
As a result, easyJet said it will take no deliveries in the 2021 financial year, 8 in 2022, 7 in 2023 and 18 in 2024. However there has been no change made to the total number of firm Airbus A320 NEO family aircraft outstanding orders.
"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," said Chief Executive Officer Johan Lundgren.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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