EasyJet secures new five-year $1.87 bln loan

Budget airline easyJet received a boost on Monday (January 11) as it battles through more turbulence.

The carrier raised liquidity through a new five-year loan of $1.87 billion.

It's backed in part by the British government, and should ease concerns over its finances as travellers stay at home.

Like most airlines, easyJet had hoped to see a recovery this spring.

But countries including Britain are now back in lockdown - and that is likely to delay any recovery by several months.

EasyJet said the new loan improved its debt situation.

It plans to repay and cancel an earlier credit facility of $500 million, and term loans of about $540 million.

The British carrier has made numerous efforts to survive the pandemic.

It's let go of 4,500 staff so far, asked shareholders for cash and sold dozens of its aircraft.

It did not rule out even more action in a statement on Monday (January 11).

The new loan was underwritten by a number of banks.

It was also backed by guarantees from the British government's UK Export Finance department.