The low-cost carrier easyJet has confirmed in its latest trading update that it has placed an order with planemaker Airbus for 157 additional A320neo family aircraft.
The details were unveiled on October 12, 2023, as the airline also said it expects its annual profit before tax to be between $541 million (£440M) and $565 million (£460M).
The Bristish-based carrier already has an order in place for 158 A320neo family aircraft set to be delivered by 2029.
EasyJet also revealed that 35 of the A320neo jets that are part of that existing order will be converted into A321neos within existing order.
In total the carrier has 315 aircraft now on order for delivery by 2034, alongside a further 100 purchase rights that were also announced in the latest trading update.
“We have also reached a proposed agreement with Airbus for an additional 157 aircraft order and a further 100 purchase rights. This will enable easyJet’s fleet modernization and growth to continue beyond 2028 while providing substantial benefits including cost efficiencies and sustainability improvements,” Johan Lundgren, CEO of easyJet, said.
The newly announced purchase will enable easyJet to complete its fleet replacement program of A319 aircraft and replace approximately half of the A320ceo aircraft.
The airline said it is in exclusive negotiations with CFM International for the supply of engines for the proposed purchase.
The financial update estimated that the cost of the new aircraft and conversions will reach around $19.9 billion.
In the three months leading up to September 30, 2023, easyJet said its passenger traffic increased by 9%, resulting in pre-tax profits of between $799 million (£650M) and $824 million (£670M).
Moving into the 2024 financial year, the carrier said booking momentum is continuing and expects Q1 capacity to grow by 15%.
“We have delivered a record summer with strong demand for easyJet’s flights and holidays with customers choosing us for our network, value and service. This performance has demonstrated that our strategy is achieving results and so today we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence,” Lundgren said.
He added: “Our new medium-term targets provide the building blocks to deliver a PBT greater than £1 billion. This will be driven by reducing winter losses, upgauging our fleet and growing easyJet holidays. As part of our commitment to shareholder returns, the Board intends to reinstate dividends commencing with the FY23 results.”