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EasyJet CEO says wants to restart Israel flights when it can

EasyJet's CEO Johan Lundgren
EasyJet's CEO Johan Lundgren

The chief executive of EasyJet said the rwanted to restart flights to Israel as soon as possible but it could not currently say when this would happen.

"That is obviously something that we want to do as soon as possible but we cannot say now when that is," CEO Johan Lundgren told reporters today.

EasyJet suspended flights to Tel Aviv on Sunday until next Tuesday and said it would continue to evaluate the situation on a daily basis.

British Airways had continued to fly to Tel Aviv until Wednesday, when it suspended the route, hours after one of its planes diverted back to London due to security concerns just before it was due to arrive at Israel's Ben Gurion Airport.

Lundgren said the situation in Israel had not impacted demand for flights to neighbouring countries like Egypt or Turkey.

The decision to restart Israel flights would depend on information from multiple sources, said Lundgren, adding that the airline was engaging with 10 to 12 different government authorities and security experts.

The British airline also said today it had reached a proposed deal with Airbus to expand its fleet by up to 257 additional aircraft, plotting its growth beyond 2028, with bigger and more fuel efficient planes.

EasyJet announced the order after forecasting annual profit of £440-460m, and said it would restart its dividend, signalling that its recovery from the pandemic was now in full flow.

"Our strategy is achieving results and so today we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns," CEO Johan Lundgren said in a statement.

The airline, which competes with Europe's biggest airline low-cost player Ryanair and British Airways, said it was targeting a pretax profit of more than £1 billion in the medium term.

Bernstein analyst Alex Irving said it was "a very confident outlook".

"EasyJet believes it has a road to much higher profitability than the street does. If they are right, numbers will need to come up," Irving said.

EasyJet said the proposed aircraft purchase, which is subject to shareholder approval, would add 157 aircraft plus the rights to 100 more, with the majority being the larger A321neo planes for delivery between 2029 and 2034.

The airline said the terms of the deal with Airbus were attractive and it gave the airline certainty of aircraft supply. EasyJet, which only flies Airbus planes, said it considered Boeing as part of a competitive process.

The group said it also planned to convert an existing order for 35 A320neo planes into the bigger A321neo jets.

EasyJet founder Stelios Haji-Ioannou, who owns a 15% stake in the airline, has in the past disputed the need for the airline to buy expensive new aircraft.