LONDON: (HRNW) British airline easyJet boosted its liquidity through a new five-year loan facility of $1.87 billion, backed by a partial guarantee from Britain, helping to ease concerns about its finances as the pandemic continues to stop travel.
Like most European airlines, cash-strapped easyJet had been hoping to be gearing up for a recovery this spring, but with Britain, its biggest market, back in lockdown, flying is expected to stay at minimal levels for several more months.
EasyJet said the new loan facility improved its debt maturity profile and it planned to repay and cancel the full drawn revolving credit facility of $500 million and term loans of about 400 million pounds ($540 million) in the first quarter.
To survive the pandemic so far, easyJet has axed 4,500 staff, tapped shareholders for cash, and sold dozens of its aircraft, and it did not rule out further action in its statement on Monday.
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