Jet2 has raised £422 million from shareholders and new investors to help it ride out the Covid-19 crisis.
Philip Meeson, executive chairman of the group, said: “The board is grateful to both existing shareholders and new investors for their significant support of this equity issue.
“Based on the indicative scenario planning undertaken by management, the board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment.
More: Jet2holidays extends programme suspension until mid-April
Jet2.com adds flights from regional airports to Antalya
Comment: How much capacity will be flown in 2021?
“Furthermore, the directors believe the fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well positioned to capitalise on the upturn opportunity when it arrives.”
He concluded: “The board remains of the belief that once able to do so, our customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European leisure cities.”
The Times reported that the group’s shares have enjoyed a “strong run” in recent weeks and the business is valued at £2.3 billion.
It said: “The company has cash of £479 million at present and potentially has access to Bank of England pandemic relief loans of £300 million.”
More: Jet2holidays extends programme suspension until mid-April