EasyJet has secured a £600m loan from the Treasury and Bank of England’s emergency coronavirus fund, as the airline’s founder and biggest shareholder, Sir Stelios Haji-Ioannou, said it would run out of cash by the year end regardless.
The airline said it would also borrow another $500m (£407m) from commercial creditors to ensure its liquidity, with its fleet grounded for at least April and May due to the pandemic.
EasyJet has used the government’s Covid-19 corporate financing facility, which allows UK businesses to apply for loans at pre-crisis commercial rates.