Jet2 speaks of continued uncertainty as it slumps to loss

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Jet2 PLC (LON:JET2) said it has little visibility for the current financial year after slumping to loss in the previous period.


Performance is dependent on the level of flying permitted for the remainder of Summer 21, with customers booking significantly closer to their departure date because of uncertainty over Coronavirus (COVID-19) travel rules.


The travel company said the ‘traffic light system’ implemented by the UK government “only served to confuse rather than clarify” things for travellers, however the recent additions to the green list and scrapping quarantine for double-jabbed people “was a welcome step in the right direction”.


It added that bookings to date for Winter 21/22 are “satisfactory” but they have slowed more recently given speculation around international travel.


“Bookings for Summer 22, for which package holiday bookings are displaying a materially higher mix of the total, are encouraging and… we are optimistic that Summer 22 will be a considerable improvement on both Summer 20 and Summer 21,” the group said.


In the year to 31 March, revenue plummeted 89% to GBP395mln and the airline slumped to a GBP373mln loss before tax, from a GBP264mln profit the year before.


As of 4 July, the cash balance excluding customer deposits was GBP1.4bn, after processing an equal amount in refunds to customers and signing a GBP150mln term loan and GBP387mln convertible bonds.


Shares were flat at 1,243p on Thursday at the opening bell.

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