EasyJet faces having to raise more money from shareholders next year to repair its finances, industry experts say.
Andrew Lobbenberg, an analyst at HSBC, said the airline could raise cash by issuing more shares to investors or by offering them so-called convertible bonds – loans that can be turned into shares.
Aviation consultant Richard Maslen said a further injection of cash from next summer ‘can’t be ruled out’.
In a tailspin: EasyJet is operating at just 20 per cent of its capacity over the winter
Lobbenberg said: ‘We would not be surprised to see the company take moves to repair its balance sheet in 2021…once cash flow generation is in sight.’
EasyJet is operating at just 20 per cent of its capacity over the winter. It posted its biggest ever loss – £1.3billion – earlier this month.
Lobbenberg said easyJet does ‘struggle slightly’ compared to low-cost rivals Ryanair and Wizz Air, which both have bold expansion plans to increase market share once passenger demand picks up.
Earlier this month, Wizz Air won 1,052 more takeoff and landing slots at Gatwick for the 2021 summer flying season. Ryanair has taken over easyJet’s 312 weekly slots at Stansted after easyJet closed its base at the airport.
EasyJet has £2.7billion in cash after raising £400million through selling and leasing back aircraft. But it burned through £651million in the three months to September.
Last week, the airline saw a surge of bookings for domestic flights in December after the Government announced the easing of restrictions for the festive period.
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