The arrangement comes amid concerns about the flight time its planes will get next year until a Covid vaccine is rolled out
Airline Easyjet has pushed back more plane orders as the new Covid strain threw the global aviation industry deeper into crisis.
Under a new timetable with jet maker Airbus, Easyjet will not receive any new planes in 2021.
And a total of 22 that were due to be delivered between 2021 and 2024 have now been bumped back to 2027 and 2028.
The arrangement will save cash in the short-term, and comes as serious questions have been raised about how much flight time any of its planes will get next year until a Covid vaccine has been rolled out worldwide.
Any hopes of a Christmas boost have been dashed by the discovery of the strain that has prompted dozens of countries to ban UK travellers.
Easyjet has a whopping £4.5billion order with Airbus to buy more than 100 planes, which has been at the centre of a bitter spat with Easyjet’s founder and largest shareholder, Sir Stelios Haji-Ioannou.
He wants the order cancelled and if the budget airline hoped the deferrals would repair the relationship, it was mistaken.
There are rumours that Easyjet may need to turn to shareholders again to raise more cash, despite selling £420million of stock in June.
Stelios said that as long as Easyjet maintains its relationship with Airbus he is ‘not giving them another penny’, especially when there is ‘no chance of an early restart to normal flying’.
Bosses will be under more fire at the annual meeting when it is expected to be revealed that Stelios has used his roughly 30 per cent shareholding to vote against the re-election of every board member.
Easyjet rose 2.4 per cent, or 17.8p, to 775p, buoyed by a rebound that lifted other travel and leisure stocks walloped on Monday.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.