Business & Investment

Jet2 will raise £ 422m from investors after extending flight cancellations

Low-cost carrier Jet2 will cancel all flights until April 14th before using investors in a £ 422m finance lifeline.

  • Over 35 million issued shares and approximately 600,000 retail shares were offered
  • Jet2 flights were suspended in March last year before gradually resuming from mid-July.
  • The company posted a pre-tax loss of £ 68.7m in its most recent six-month closing

Low-cost carrier Jet2 has announced that it has raised £ 422m from investors in just days after abolishing all flights and holidays until mid-April.

It said the money would “provide sufficient liquidity” to the business during the coronavirus pandemic and help it recover when demand inevitably returns.

The company offered more than 35 million issued shares and just under 600,000 retail shares at a discount of about 9.1%. The company said it received “strong support” from both shareholders and new investors.

Grounding: Based at Leeds Bradford Airport, Jet2 has significantly reduced its flight program, heavily affected by last year’s quarantine restrictions.

Despite the size of the financial package, shares in Jet2, the UK’s third-largest regular airline, plummeted 7.2% today to £ 12.04.

A travel agency based at Leeds Bradford Airport has been severely affected by quarantine restrictions imposed by the British and European governments and has significantly reduced its flight program.

On Tuesday, due to “uncertainty in progress,” all flights declared that they would not proceed until April 14, and announced that they would already stop in January until late March.

Jet2 first stopped all flights on March 11th last year and only phased in from mid-July. The following month, it announced to the pilot union BALPA that it would make 102 pilots redundant.

This caused enormous financial damage to them, and as a result of the six months to September 30, the company saw a 90% reduction in passenger numbers and £ 68.7m compared to a profit of £ 278.6m. Reported a pre-tax loss. one year ago.

“This revenue provides sufficient liquidity on an extended, perhaps unpredictable shutdown basis to deal with this ongoing and difficult trading environment,” said Philip Meason, chairman of the company’s board of directors. I believe. “

Jet2 reported a more than 90% reduction in passenger numbers and a pre-tax loss of £ 68.7m in the six months to September 30th.

Jet2 reported a more than 90% reduction in passenger numbers and a pre-tax loss of £ 68.7m in the six months to September 30th.

“The Board believes that once we can do that, our customers will enjoy the wonderful experience of Jet2 Holidays, and Jet2.com and Jet2holidays will continue to have a prosperous future.”

Health Minister Matt Hancock warned yesterday that deploying the Covid-19 vaccine is “absolutely essential” so that British people can go on vacation this summer.

“I know people are definitely eager to have a summer vacation,” he told BBC Breakfast. You can get that certainty.

Hancock further states:

Quiet beaches: Industry group Visit Britain estimates that the UK saw a 96% reduction in inbound visitors between April and June last year compared to the same period in 2019.

Quiet beaches: Industry group Visit Britain estimates that the UK saw a 96% reduction in inbound visitors between April and June last year compared to the same period in 2019.

“It’s really good news that the vaccine is being rolled out so fast and accepted by so many people. I’ll elaborate on it if possible, but unfortunately there are uncertainties at this point. Still. “

It is currently illegal to take vacations in the UK or abroad. People can only travel if they have “reasonable excuses” such as going to work or going to the hospital.

Regulations have caused tremendous damage to the travel industry, and industry group Visit Britain estimates that the UK received it. 96% reduction in inbound visitors Between April and June last year against the same period in 2019.

The UK is projected to accept 11.7 million foreign tourists this year. This is about 21% more than the same number in 2020, but down more than 70% at the level two years ago.

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Jet2 will raise £ 422m from investors after extending flight cancellations

https://www.dailymail.co.uk/money/markets/article-9253275/Jet2-taps-422m-three-days-extended-flight-cancellations.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Jet2 will raise £ 422m from investors after extending flight cancellations

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