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easyJet PLC on Tuesday said it is buying 56 A320 neo family aircraft from Leiden, Netherlands-based aerospace firm Airbus SE.
The delivery is expected between easyJet's financial years 2026 and 2029. The Luton Airport-based firm said the purchase is boosted by 2013 agreement between itself and Airbus. This enables easyJet to ‘continue to benefit from the highly competitive pricing and the flexibility rights in this agreement,’ it explained.
‘At 2018 average list prices for the Airbus aircraft (the latest year for which Airbus has published list prices for the relevant aircraft), the aggregate purchase price for the proposed purchase would be approximately $6.5 billion. The aggregate actual price for the aircraft will be very substantially lower because of certain price concessions granted in connection with the 2013 Airbus agreement,’ easyJet explained.
Meanwhile, Airbus will convert 18 A320neo family aircraft to A321neo aircraft for easyJet. The main difference is seat capacity. A320neos generally have 186 seats while A321neos have a capacity of 235 seats. EasyJet expects the converted aircraft to be delivered between its financial years 2024 and 2027.
‘The new aircraft will continue the modernisation of the easyJet fleet. The new aircraft will deliver between a 15% and 25% unit cost fuel efficiency improvement (depending on which aircraft they replace). This will significantly reduce easyJet's fuel costs and therefore improve our overall cost base,’ the firm said.
Tuesday's announcement by the budget airline came one day after it warned about rising costs and the need to lease additional aircraft, due to the recent disruption of flights at two of its biggest airports.
The low-cost carrier on Monday said it expects the extra costs this summer to be a one-off occurrence, with more system resilience built in time for the 2023 peak season.
easyJet shares were 0.4% higher at 445.30 pence each in London on Tuesday morning, while Airbus shares traded 1.6% higher at €98.57 each in Paris.
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