Jet2 suspends flights and cuts summer capacity
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Jet2 has suspended all flights and announced a reduced flying programme from May 1.
It will also freeze recruitment, it said, to try to limit the impact of the coronavirus on its business.
Parent company Dart Group said it has also put on hold all discretionary spending and it plans to defer all non-regulatory capital expenditure.
In a trading update yesterday afternoon, 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,” it said.
“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.
“In light of these rapidly changing exceptional events, plus the uncertainty around deposits recovery, the Board has today decided to withdraw its previous profit guidance issued on 11 March 2020 and will provide a further update in relation to the FY20 profit outturn once circumstances become clearer.”
Adding that the impact and duration of coronavirus is impossible to determine at this time, it was impossible for the Board to state how it will affect group profit for the financial year to March 31, 2021.
“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,” it said.
“This includes a reduced flying programme beyond 1 May 2020, freezing recruitment and discretionary spending and deferring all non-regulatory capital expenditure. In addition, we are in ongoing discussions with existing liquidity providers who recognise the strength of our business model.
“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.
“Further announcements will be made by the Board as circumstances evolve.”
