LONDON- easyJet (U2), a British airline, has revealed a proposed agreement with Airbus to potentially add up to 257 additional aircraft to its fleet. This expansion plan aims to secure the airline’s growth beyond the year 2028, focusing on larger and more fuel-efficient planes.
EasyJet made this order announcement following its projection of an annual profit ranging from £440 million to £460 million ($542-$567 million). The airline also intends to reinstate its dividend, signaling that its recovery from the pandemic is now well underway.
easyJet Orders 157 Airbus Planes
EasyJet’s Chief Executive, Johan Lundgren, says, “Our strategy is achieving results, and today, we’ve outlined an ambitious roadmap to serve our customers better and provide attractive returns for our shareholders.”
In its competitive landscape, EasyJet faces rivals like Ryanair, the largest low-cost airline in Europe, and British Airways. The airline has set its sights on achieving a pre-tax profit of over £1 billion in the medium term. Bernstein analyst Alex Irving said this outlook is “very confident.”
“EasyJet believes it has a path to achieve significantly higher profitability compared to market expectations. If they are correct, financial figures will need to improve,” Irving commented.
First Delivery By 2029
EasyJet has put forward a proposal for the purchase of aircraft, subject to approval by its shareholders. This proposed acquisition comprises 157 aircraft and the rights to an additional 100, with a focus on the larger A321neo models scheduled for delivery between 2029 and 2034.
The airline emphasized that the terms of the agreement with Airbus are favorable and offer a secure supply of aircraft. While EasyJet exclusively operates Airbus aircraft, it also considered Boeing as part of its competitive evaluation process.
Furthermore, the group revealed its intention to convert an existing order for 35 A320neo planes into the larger A321neo aircraft.
It’s worth noting that EasyJet’s founder, Stelios Haji-Ioannou, who holds a 15% stake in the airline, has previously expressed skepticism about the necessity of purchasing expensive new aircraft.
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