Last checked at 
* Says would remain cash-positive if grounded for nine
months
* Would seek additional funding if grounding lasts longer
* Has notional cash balance of 3.3 bln stg
* Unable to provide 2020 guidance amid coronavirus crisis
* Shares up 9%
(Adds detail, CEO comment)
By Sarah Young
LONDON, April 16 (Reuters) - British airline EasyJet
can survive a lengthy grounding of its fleet during the
coronavirus pandemic thanks to measures taken to shore up its
finances, the low-cost carrier said on Thursday.
Airlines worldwide are battling for survival after lockdowns
and travel bans have brought air travel to a virtual standstill,
with little idea on how fast the sector will recover.
EasyJet said on Thursday that it has the ability to shrink
its fleet through leases and plans to sell six old aircraft,
giving it flexibility depending on the shape of future demand.
Chief Executive Johan Lundgren said the airline would remain
cash-positive in the event that its fleet is grounded for nine
months and would be able to seek additional funding should the
grounding extend beyond that.
"Clearly if this goes on longer than that, which I don't
think (it will), we will continue, and we are continuing to
explore other avenues," he told reporters.
Given the level of continued uncertainty, easyJet said it
was not possible to provide financial guidance for the remainder
of the 2020 financial year.
"However, we continue to take every step necessary to reduce
costs, conserve cash burn, enhance liquidity, protect the
business and ensure it is best positioned for a return to
flying," it said.
EasyJet shares rose 9% to 658 pence in early trading. Before
Thursday's update the stock had lost 58% this year.
The company has deferred new aircraft on order and used a
government job retention scheme to furlough pilots and cabin
crew. It has also accessed a government corporate finance scheme
to boost its balance sheet.
With its various funding initiatives, the airline expects to
generate total additional liquidity of about 1.85 billion to
1.95 billion pounds ($2.31 billion to $2.43 billion), leading to
a notional cash balance of about 3.3 billion pounds.
EasyJet forecast headline pretax loss of 185 million to 205
million pounds for its first half to March 31, compared with a
loss of 275 million pounds in the same period last year.
It said that winter bookings are well ahead of the
equivalent point last year.
EasyJet is also under pressure from its founder and biggest
shareholder, Stelios Haji-Ioannou, who wants it to cancel the
107 planes it has on order from Airbus, creating an
additional headache for management.
That dispute is partially driven by differing views within
the aviation industry over how demand for travel will recover.
($1 = 0.8013 pounds)
(Reporting by Sarah Young
Editing by Kate Holton and David Goodman)
