easyJet plc (LON:EZJ) has raised £419mln through a placing to ease the financial burden caused by the grounding of its fleet due to coronavirus.
The Luton-based airline, which restarted flights on a limited basis earlier this month, placed 59.5mln shares at 703p each or around 15% of its share capital before the share issue and a 5% discount to the closing price yesterday.
Since the crisis started, easyJet said it had reduced operating cash costs by 70% and slashed its capital expenditure programme.
The placing proceeds together with the cash raised from a £200-350mln sale and leaseback programme would increase the airline’s cash balances to more than £3bn, it added, and make its balance sheet one of the strongest in the industry.
Customers choosing to rebook or take a voucher has meant cashflow has been slightly better than its estimate of a £1bn outflow for the past three months, the airline said.
Capacity over the summer months is expected to rise, easyJet added, as demand increases and government restrictions across Europe are relaxed.
The FTSE 250-listed group has been involved in a bitter row with its founder and 33% shareholder Stelios Haji-Ioannou over an order of planes from Airbus.
Today the airline said it had consulted with a number of its major shareholders prior to the placing and has respected the principles of pre-emption through the allocation process.