easyJet continues to focus on maximising liquidity in the event of an extended grounding period and to ensure the business is ready to react to reduced demand as the European airspace begin to reopen. To that effect easyJet has reached agreement with Airbus for the net deferral of 24 aircraft deliveries from Financial Years 2020, 2021, and 2022.
This will mean that versus our previously disclosed fleet plan the following aircraft deliveries will be deferred
- 10 aircraft deliveries in FY20;
- 12 aircraft deliveries in FY21; and
- 2 aircraft deliveries in FY22
As a result, in FY21 the airline will take no aircraft deliveries and retains the option to defer a further 5 deliveries in FY22. Exact dates of future deliveries of the deferred aircraft are to be agreed in response to the demand environment.
Within the next 16 months easyJet also has 24 operating leases due for renewal providing the airline with further flexibility, which could include deferment and cancellation.
As a result of these actions the fleet has the flexibility to be substantial lower than our previous plan whilst also retaining the flexibility to respond to future demand environments. It will also deliver significant reductions in capex spend over the next three years and we will provide more information regarding our future fleet plan at our trading update on Thursday 16 April.
Johan Lundgren, easyJet CEO 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 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."