EasyJet has unveiled plans to order up to 257 new aircraft, as it targets annual profits of more than £1 billion in the medium-term.

The low-cost carrier said it had entered into conditional arrangements with Airbus to secure the delivery of 157 aircraft (56 A320 neos and 101 A321 neos) between FY29 and FY34, as well as options on a further 100 jets.

The deal would total $19.9 billion at list prices, although easyJet said that the actual price “would be substantially lower because of certain price concessions granted by Airbus”.

The agreement is subject to shareholder approval, which the airline hopes to complete by the end of the year.

EasyJet currently already has an existing order book for 158 Airbus aircraft for delivery by 2028, with the most recent order for 56 A320 neo Family aircraft coming in July last year.

It said that the new proposed order would enable it to complete its fleet replacement programme of A319 aircraft, as well as replacing approximately half of its A320 ceo aircraft, and providing “the foundation for disciplined growth”.

The news comes as the carrier said it expects to report a record fourth quarter profit before tax (PBT) of between £650 and £670 million, with passenger growth growing 8 per cent year-on-year.

The airline is targeting a group PBT per seat of between £7 and £10 in the medium-term, with its easyJet holidays division delivering over £250 million of PBT towards an overall ambition of achieving an annual PBT of more than £1 billion.

Commenting on the news Johan Lundgren, CEO of easyJet, said:

“We have delivered a record summer with strong demand for easyJet’s flights and holidays with customers choosing us for our network, value and service.

“This performance has demonstrated that our strategy is achieving results and so today we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence.

“Our new medium-term targets provide the building blocks to deliver a PBT greater than £1 billion. This will be driven by reducing winter losses, upgauging our fleet and growing easyJet holidays.

“As part of our commitment to shareholder returns, the Board intends to reinstate dividends commencing with the FY23 results.

“We have also reached a proposed agreement with Airbus for an additional 157 aircraft order and a further 100 purchase rights.

“This will enable easyJet’s fleet modernisation and growth to continue beyond 2028 while providing substantial benefits including cost efficiencies and sustainability improvements.”

This week easyJet also became the first airline to sign a contract with Airbus for its carbon-removal initiative known as the Airbus Carbon Capture Offer.

EasyJet’s credits will last from 2026 to 2029, complementing the use of other carbon reduction technologies including Sustainable Aviation Fuel (SAF).

EasyJet is first airline to sign up to Airbus’ carbon-removal initiative