EasyJet Secures $20 Billion Deal for Airbus Jets Following Record Profit Announcement

 

In the wake of revealing an anticipated record pre-tax profit, easyJet is making a substantial investment with a significant aircraft order. The airline has finalized a deal valued at close to $20 billion for 157 Airbus jets, comprising A320neo and A321neo models. Additionally, easyJet holds purchase rights for an additional 100 aircraft.

In a strategic move, easyJet plans to “exercise conversion rights within its current order book to convert 35 A320neo deliveries into A321neo aircraft,” according to CEO Johan Lundgren. This decision is aimed at facilitating fleet modernization and sustained growth beyond 2028, all while achieving cost efficiencies and advancements in sustainability.

The 157 firm orders are scheduled for delivery between 2029 and 2034. Concurrently, easyJet already has 158 Airbus jets in its existing order pipeline, set to be delivered by 2028.

Looking at the financial outlook, easyJet anticipates a pre-tax profit of £650 – £670 million for Q4. Notably, passenger traffic has seen an 8% increase, affirming the airline’s success in delivering a record summer with robust demand for flights and holidays.

In response to the positive performance, easyJet stated, “This performance has demonstrated that our strategy is achieving results, so we have set out an ambitious roadmap to serve more customers and deliver shareholder returns.” The airline also announced its intention to resume dividend payouts when unveiling the full-year results for FY23.