EasyJet has taken advantage of government relief amid the coronavirus crisis with the issuance of £600 million of commercial paper (a short-term debt instrument) through the Covid Corporate Financing Facility (CCFF).
The airline said it continues to “focus on maximising liquidity in the event of an extended grounding period”.
EasyJet has also issued today a “utilisation request” to fully draw down on its $500 million revolving credit facility, secured against aircraft assets.
As a result of this, by 9 April, easyJet is expected to have access to cash reserves of about £2.3 billion.
Given the possibility of a prolonged grounding easyJet will continue to consider further liquidity and funding options.
Meanwhile, easyJet has reached agreements on furlough arrangements for its pilots, cabin crew and training instructors from 1 April 2020.
Following the FCA’s recent update on reporting guidelines, easyJet will release a trading update in the second half of April and a half-year results announcement on 30 June.
Johan Lundgren, easyJet chief executive, said: “We remain absolutely focused on ensuring the long-term future of the airline, reducing our costs and preserving jobs, to make sure easyJet is in the best position to resume flying once the pandemic is over.
“We are pleased that we have now reached agreement with both Unite and BALPA regarding furlough arrangements for UK-based easyJet pilots and crew.”
The CCFF provides businesses with access to funds at the commercial rates which were available before the coronavirus crisis, and any UK company that had an investment grade rating before the crisis can apply for this funding.