Stelios: I won’t stump up for easyJet bailout

The billionaire founder of easyJet has refused to invest any more money in the budget airline amid speculation that the FTSE250-listed company plans to tap investors for more cash. 

There is speculation that the firm – in which Sir Stelios Haji-Ioannou’s family vehicle is the largest shareholder – will ask investors for new funds for the second time within 12 months to secure its financial position. 

City sources said some investors may have already been sounded out about a potential share fundraising. In January, analysts at Citigroup said the airline could need another £300million of equity to keep its debt to earnings level at a sustainable level. 

Standing firm: Sir Stelios Haji-Ioannou’s family vehicle is the largest shareholder in easyJet

Haji-Ioannou, who last week made millions by selling shares and reducing his family’s holding in the airline to 27.7 per cent, told The Mail on Sunday: ‘At the rate that the scoundrels [what he calls the management team] are destroying the equity of the company, it is inevitable that more equity will have to be raised from investors. 

‘They lost £1.5billion in the year to September 2020 and my guess is that they will lose a similar sum this year. For as long as the scoundrels squander the company’s money on more Airbus planes, I am not going to invest any of my money with them.’ 

EasyJet, which is completing a £4.5billion order of 107 Airbus planes, raised £420million last summer by placing new shares with investors after its fleet was grounded. 

Early in the pandemic, easyJet borrowed £600million from the Government. The unsecured loan must be paid back next month. Last week, it raised €1.2billion (£1billion) by issuing a bond to be repaid in 2028. 

A spokesman for easyJet said: ‘We will continue to review our liquidity position and to assess further funding opportunities should the need arise.’