EasyJet raises GBP300m in aircraft leaseback deal

EasyJet has raised GBP300m through selling and leasing back part of its fleet as the low-cost carrier tries to shore up its finances. The push for new cash comes after the airline carrier revealed earlier this month that its losses soared to more than GBP800m this year, the first in its 25-year history, and called for more government support for the aviation industry. The sale and leaseback of nine of its workhorse A320 aircraft will raise just over GBP306m, and is the second time the airline has sold off planes this year.  EasyJet said it would continue to look for future funding opportunities, and that it had seen “high levels of demand” in the multibillion-dollar leasing market. The carrier still owns 152 aircraft, about 45% of its fleet. A boom in aircraft financing helped support the airline industry’s rapid growth before the pandemic. As crisis has hit, lessors have typically sought to do deals with stronger airlines including, easyJet, which offer a more secure rental stream. Five of easyJet’s planes have been sold to lender and wealth manager Wilmington Trust for $191.1m, and will be leased back for an average of 117 months. A second deal with Ireland’s Sky High 112 Leasing Company, will generate $207.5m in cash, with the aircraft leased for an average of 116 months. Mark Simpson, an aviation analyst at Goodbody, said the sale and leaseback deals announced on Tuesday “extend the period over which easyJet can survive” the crisis. He estimated they would lead to monthly leasing rates of $275,000 for the first five aircraft and $303,500 for the following four. The terms are “not especially attractive”, but the extra cash “will outweigh that factor in the shorter term,” Simpson said. <br/>