easyJet plc (LON:EZJ) has agreed the sale and leaseback of six A320neo aircraft for £206mln amid plans to sell £500-600mln of assets to strengthen its balance sheet.
The airline said the net book value of the aircraft was £141mln as of March 31.
READ: EasyJet raises £419mln to give it one of the 'strongest balance sheets in the industry'
The aircraft will be sold to SMBC Aviation Capital and leased back for terms of between 110 and 122 months, totalling around £155mln, for an annual headline cost increase averaging £5mln.
The first part of the transaction is factored in the low-cost carrier’s interim results.
easyJet added SMBC Aviation Capital will be its preferred partner for the sale of other aircraft.
“We see this as positive further progress to realising funds from the unencumbered aircraft fleet,” Liberum commented.
“We are not surprised that the focus has shifted to nearly-new latest generation aircraft, rather than the mid-life A319s that the airline has previously sought to use for SLB deals. This reflects the greater proceeds that can be raised, and the much greater attractiveness of newer types to lessors.”
Shares advanced 3% to 690.8p on Friday at the opening bell.