(Alliance News) - easyJet PLC on Friday said it has completed the sale & leaseback of 23 aircraft, generating USD771 million in proceeds.
The proceeds of the sale will be used to maximise liquidity and further strengthen easyJet's financial position. The USD771 million, or GBP608 million, proceeds is at the upper end of the company's GBP500 million to GBP650 million forecast range.
The final transaction was executed with Jin Shan 37 Ireland Co Ltd, a unit of Bocomm Leasing, for the sale and leaseback of five A321neo aircraft for USD266 million.
The agreement will see the aircraft leased back until each of them reach 10 years of age. Following the deal, 50% of the company's fleet remains unencumbered.
easyJet said it has now raised over GBP2.4 billion since the beginning of the Covid-19 pandemic to maximise liquidity and strengthen its financial position.
The company earlier in August had announced revenue for the third-quarter ended June 30 of GBP7 million, a small fraction of the GBP1.59 billion a year prior. easyJet swung to a quarterly headline pretax loss of GBP324.5 million from GBP174.2 million profit recorded a year ago.
The airline industry has been one of the hardest hit following travel restrictions put in place to curb the spread of Covid-19.
The company had said it expects to fly 40% of planned capacity for the fourth-quarter ending September 30. Flying capacity however remains at the mercy of travel restrictions, with the UK on Friday introducing a 14-day quarantine to anyone entering the country from France and the Netherlands as the number of 'flight corridors' decline.
easyJet shares were down 5.2% at 579.20 pence each early on Friday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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easyJet (EZJ)