Easyjet buys 135 new Airbus planes

The share price of Easyjet is up today (June 18th) after the budget airline confirmed the purchase of over 100 new aeroplanes.

It revealed on the second day of the Paris Air Show that it is buying 135 new aircraft from Airbus, with the purchase made up of 35 A320 planes and 100 new-generation A320neo jets.

Easyjet chief executive Carolyn McCall explained Airbus offered the best deal for the planes and that is why the airline chose to partner with the firm for the order.

She also noted that the total deal comes in "at a price with a greater discount to the list price than their landmark fleet purchase with Easyjet in 2002".

Airbus are believed to have beaten off competition from rival aircraft manufacturer Boeing to land the contract with Easyjet, which would be worth £7 billion if the planes were sold at list price.

But it was stressed by the budget airline that it has confirmed the purchase of the aircraft at a "substantial discount".

Investors responded strongly to the purchase and the share price of Easyjet is up by around 2.5 per cent this afternoon.

At 15:40 BST, stocks were trading 32 points higher than at the start of the day, at 1,284.00.

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