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EasyJet raises $398M from sales and leaseback of 9 Airbus jets

A British low-cost airline EasyJet raised total cash proceeds of $398.6 million after completing the sale and leaseback deals of nine aircraft with two leasing companies.

On October 27, 2020, EasyJet signed two agreements. With Wilmington Trust SP Services, a Dublin-based leasing company, the airline agreed for the sale and leaseback of five Airbus 320 family jets. EasyJet announced that the aircraft involved in the deal would generate cash sales proceeds up to $191 million. Under the agreement, all five Airbus 320 planes were leased for up to a term of 117 months and created lease obligations for nearly $161 million.

The second deal was made between the airline and Sky High 112, another Irish leasing company, for four Airbus 320 family aircraft under the sale and leaseback agreement. According to EasyJet’s announcement, planes were leased back for up to 116 months and created lease dues reaching $140 million. EasyJet stated that it expected to gain almost $208 million in cash sales proceeds.

While the airline considers continuing on reviewing its liquidity position, it also hopes to raise more capital by seeking more sales and leaseback deals in the future. EasyJet counted that after deducting aircraft depreciation costs, the deal of the nine aircraft sales and leaseback will increase the company’s income up to $19.5 million.

After completing the recent deals, EasyJet will have a total of 152 fully owned aircraft on its fleet.

 

 

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