Last checked at 
* Places 59.5 mln new ordinary shares at a 703 pence
* Shares down 5.4% to 699 pence
* New equity help boosts liquidity to 3 bln stg
(Adds background, share price)
LONDON, June 25 (Reuters) - Budget airline easyJet has
raised about 419 million pounds ($520 million) through a share
placing to help bolster its finances after the COVID-19 pandemic
devastated the travel industry.
The new equity will help boost its liquidity to about 3
billion pounds, easyJet said on Thursday, enabling it to survive
for many more months even if planes are grounded again, and
putting it in a strong position to cope with "protracted
recovery scenarios".
EasyJet's planes returned to the air in mid-June, but with a
minimal service as lockdowns to contain the pandemic were
gradually eased. The airline is hoping to ramp up flying as the
year goes on, but demand is being hampered by UK quarantine
rules and consumer nervousness.
Airlines are hoping Britain agrees travel deals with other
countries to allow restriction-free movement between some
European countries. An announcement could come on or before the
quarantine rules are reviewed on June 29.
EasyJet said it had placed a total of 59.5 million new
ordinary shares at 703 pence apiece, after announcing the move
late Wednesday.
Its shares fell 5.4% to 699 pence in early Thursday trading.
They have approximately halved in value since the start of the
year.
EasyJet has said it does not expect passenger demand to
recover to pre-pandemic levels until 2023 and is planning to axe
up to 4,500 jobs.
Bernstein analyst Daniel Roeska said the airline was already
making progress with cost cutting.
"EasyJet has a compelling proposition of lower cost
structures and strong positions in better markets. For investors
looking to buy into the recovery in Europe, easyJet should be on
the shopping list," he said in a note.
British Airways, owned by IAG, has said it needs to
shed 12,000 jobs and there has been media speculation that IAG
could also raise new equity.
Qatar Airways, IAG's biggest shareholder, has said it would
inject equity into IAG if needed.
($1 = 0.8050 pounds)
(Reporting by Sarah Young and Alistair Smout; editing by James
Davey and Mark Potter)
