Jet2 and Jet2holidays has outlined a range of cuts and called for further details of government support for the aviation sector.
Parent company Dart Group yesterday confirmed the suspension of Jet2 flights until at least May 1.
The company is freezing recruitment and discretionary spending and deferring all non-regulatory capital expenditure.
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“In addition, we are in ongoing discussions with existing liquidity providers who recognise the strength of our business model,” the group said in a trading update.
Dart added: “Whilst, we are encouraged by the UK Chancellor’s pledge ‘to do whatever it takes’, together with his announcement of a package of government backed and guaranteed loans, we look forward to seeing further details of the proposed support for airlines and airports in due course.”
Action is being taken by the low cost carrier and tour operating group in the face of “unprecedented and unforeseen levels of travel restrictions have been imposed by governments across Europe in response to the Covid-19 pandemic”.
The company said: “Over the past week we have conducted an extensive repatriation programme to bring our valued customers safely home, and we are proud that the company and all of our colleagues have gone the ‘extra mile’ to ensure that everyone has been looked after.
“Given the current situation and the wide range of intangibles with which we are now faced, including concern for our hotel partners with whom we have placed deposits to secure hotel rooms for the summer 2020 season, we now have reduced visibility on the financial implications for our company.”
Annual profit guidance issued last week has been withdrawn “in light of these rapidly changing exceptional events” and a further update will be given “once circumstances become clearer”.
“The impact and duration of Covid-19 is, at this time, impossible to determine, and the board has no clarity as to how this will affect group profit before foreign exchange revaluation and taxation for the financial year ending 31 March 2021,” Drat added.
“Although we have a strong and prudent balance sheet with a £1.5 billion cash balance at 18 March 2020 and long-term structured debt in relation to aircraft financing, given the escalating situation we have accelerated actions to underpin the stability of our business and improve cash flows.