EasyJet has reached a deal with Airbus for the purchase of 157 firm and 100 optioned aircraft, which the airline says will allow for fleet modernisation and growth.
The firm orders are set for delivery between 2029 and 2034, following on from a previously negotiated deal of 163 aircraft for delivery through to 2028. The book value for the new deal is $20bn but it is expected the aircraft are heavily discounted.
EasyJet said it plans to reinstate shareholder dividends after signalling record pre-tax profits and strong demand for its flights and holidays.
EasyJet’s share price slumped following the updates, and external factors like the Israel-Hamas conflict and a fire at its home airport in Luton have added to the challenges faced by the airline industry this year.
EasyJet’s return to dividend payments and ambitious growth targets demonstrate management’s confidence in the company’s prospects.
Rivals Ryanair ordered 300 Boeing MAX-10 aircraft in May, made up of 150 firm and 150 options.
Order season is usually concluded by this time of the year, but an even larger order for around 600 aircraft is pending from Turkish airlines.
