EasyJet to buy new planes and restart dividends after summer’s record profits
EasyJet has struck a deal to expand its fleet through the purchase of more than 150 new aircraft and outlined plans to restart shareholder payouts following record profits over the summer. The UK-based airline on Thursday announced a deal with Airbus for 157 new short-haul aircraft for delivery from 2029, alongside purchase rights for a further 100 in an agreement worth $19.9bn, although airlines typically negotiate substantial discounts. It brings the total number of planes it has on order to 315 by 2034 and follows a forecast for record pre-tax profits of between £850mn and £870mn for the six months between April and September. “This will enable easyJet’s fleet modernisation and growth to continue . . . while providing substantial benefits including cost efficiencies and sustainability improvements,” said CE Johan Lundgren. The airline made the announcement as it forecast pre-tax profit of between GBP440m and GBP460m for the financial year ending in September. EasyJet shares fell 4% to 419p by lunchtime in London as investors remained sceptical over the company’s profit targets. The company’s shares have lagged behind many of its rivals, declining 14% over the past six months despite strong profitability over the summer and confident outlooks from management. “EasyJet believes it has a road to much higher profitability than the street does,” Bernstein analyst Alex Irving said. The new plane orders will allow easyJet to replace older aircraft with larger and more fuel-efficient models, and promote “disciplined growth” over the next decade, the company said. EasyJet joins a growing list of airlines placing orders with Airbus and Boeing to fuel growth over the next decade and beyond. Ryanair signed a deal to buy more than 300 Boeing planes earlier this year, while Air India announced an order for 470 planes from Airbus and Boeing, one of the biggest aviation orders in history. But the booming order book has led to supply chain problems and left manufacturers struggling to deliver aircraft to their customers. EasyJet said it expected supply chain bottlenecks at Airbus and Boeing to continue into the 2030s, and that it needed to place an order now to “ensure a supply of future delivery slots”.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-10-13/unaligned/easyjet-to-buy-new-planes-and-restart-dividends-after-summer2019s-record-profits
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EasyJet to buy new planes and restart dividends after summer’s record profits
EasyJet has struck a deal to expand its fleet through the purchase of more than 150 new aircraft and outlined plans to restart shareholder payouts following record profits over the summer. The UK-based airline on Thursday announced a deal with Airbus for 157 new short-haul aircraft for delivery from 2029, alongside purchase rights for a further 100 in an agreement worth $19.9bn, although airlines typically negotiate substantial discounts. It brings the total number of planes it has on order to 315 by 2034 and follows a forecast for record pre-tax profits of between £850mn and £870mn for the six months between April and September. “This will enable easyJet’s fleet modernisation and growth to continue . . . while providing substantial benefits including cost efficiencies and sustainability improvements,” said CE Johan Lundgren. The airline made the announcement as it forecast pre-tax profit of between GBP440m and GBP460m for the financial year ending in September. EasyJet shares fell 4% to 419p by lunchtime in London as investors remained sceptical over the company’s profit targets. The company’s shares have lagged behind many of its rivals, declining 14% over the past six months despite strong profitability over the summer and confident outlooks from management. “EasyJet believes it has a road to much higher profitability than the street does,” Bernstein analyst Alex Irving said. The new plane orders will allow easyJet to replace older aircraft with larger and more fuel-efficient models, and promote “disciplined growth” over the next decade, the company said. EasyJet joins a growing list of airlines placing orders with Airbus and Boeing to fuel growth over the next decade and beyond. Ryanair signed a deal to buy more than 300 Boeing planes earlier this year, while Air India announced an order for 470 planes from Airbus and Boeing, one of the biggest aviation orders in history. But the booming order book has led to supply chain problems and left manufacturers struggling to deliver aircraft to their customers. EasyJet said it expected supply chain bottlenecks at Airbus and Boeing to continue into the 2030s, and that it needed to place an order now to “ensure a supply of future delivery slots”.<br/>
