Clearer skies

25 June 2020 By Ed Cropley Follow @edwardcropley

The UK budget airline raised 419 mln pounds from investors. With European economies reopening and the few planes back in the sky full of passengers, CEO Johan Lundgren’s route out of the gloom is clearer. Shares up 50% from their virus low make this a good time to refuel.

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UK budget airline easyJet said on June 25 it had raised 419 million pounds ($520 million) via a share placement to bolster its financial defences in the wake of a coronavirus-related shutdown of its services.

The placing of 59.5 million shares was equivalent to 15% of easyJet’s share capital. The new shares were priced at 703 pence each, a 5% discount to their June 24 closing price.

The airline, which grounded its fleet on March 30, started flying again on June 15. It said on June 24 it planned to reopen routes gradually over the summer, reaching 30% of its pre-coronavirus capacity by the final quarter of the year.

EasyJet shares were down 5.6% at 700 pence by 0731 GMT on June 25.

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