EasyJet have announced the deferment of 24 aircraft from Airbus with the potential of further push backs or cancellations from the manufacturer. Over the course of 2020 easyJet were due to take delivery of ten aircraft along with 12 due during 2021 and two more on the cards for 2022.
As it stands currently, easyJet will take no aircraft deliveries during 2021 and they still have an option to defer a further five deliveries during 2022.
EasyJet said: “[The] exact dates of future deliveries of the deferred aircraft are to be agreed in response to the demand environment.”
Over the coming 16 months, easyJet also has 24 aircraft operating on a lease basis which will be due for renewal; it said in a trading update issued on Thursday, April 9, it had further flexibility to also defer or cancel the leases.
These measures are part of efforts by easyJet to boost liquidity and reduce capital expenditure in the event of an extended grounding period amidst the travel restrictions during the Covid-19 pandemic, and making sure the business is ready and able to react to potential reduced demand when European airspace reopens.
Chief executive Johan Lundgren said: “Our industry is facing unprecedented challenges which require unprecedented action. As we have consistently said, we remain completely focused on improving short term liquidity and reducing expenditure across the business.
“Today [Thursday] I am pleased to announce that we have agreed with Airbus to amend our delivery schedule by deferring the purchase of 24 aircraft, providing a significant boost to our cash flow and a vast reduction to our near-term capex programme.
“In addition, we have 24 leases up for renewal over the next 16 months, which gives us another level of flexibility to respond to future demand.”
