In a new deal, easyJet will expand its fleet through the purchase of 257 new Airbus jets.
Johan Lundgren, easyJet chief executive, said the proposed deal with Airbus, which is subject to shareholder approval, would add 157 aircraft and the option for 100 more A321neo jets. The airline currently operates about 330 aircraft and will be retiring some older planes.
ââ“This will enable easyJet’s fleet modernisation and growth to continue… while providing substantial benefits including cost efficiencies and sustainability improvements,” said Mr Lundgren.
The airline has forecast pre-tax profit of between £440m and £460m for the financial year ending in September, after a bumper first half saw profits booming.
Easyjet’s share price has reflected these profits this year, with stocks rising 53.46 per cent to 107.52p. The airline intends to pay shareholders a dividend of 10 per cent of its 2023 full year profit after tax, which could rise to 20 per cent in 2024 based on performance.
Despite this, easyJet’s shares have just fallen more than five per cent, with investors fretting as they head into the quieter winter period, facing challenges from the Middle East conflict and rising fuel prices, cost-of-living pressures, European strikes, and airline chaos in the UK.
Anticipating problems, 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.
But these orders have 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”.
Who owns easyJet and who is the founder?
Greek Cypriot entrepreneur Sir Stelios Haji-Ioannou is the owner and founder of easyJet. He has an elder brother, Polys, and a younger sister, Clelia, both of whom have a large stake in the company. He founded the low-cost airline in 1995 when he was 27 years old. He comes from a wealthy background, and his father financed his early deals after his son studied for a Masters.
Sir Stelios conducts business via his private investment vehicle, the easyGroup, which owns the “easy” brand. These businesses include:
- easyCar
- easyBus
- easyHotel
- easyFoodstore
- easyGym
- easyProperty
- easyCruise (sold in August 2009)
- easyCoffee
- easyStorage
- EasyInternetcafé
