Low-cost airline Jet2 slumped to a £374m loss last year Fri, 09 Jul 2021 07:00:00 +0100-Airline and holidays group Jet2 made a pre-tax loss of £373.8 million for the year to the end of March with its aeroplanes grounded for more than half of the …
Jet2.com, which operates flights from Birmingham Airport, flew 1.32 million passengers, a fall of 91 per cent on 2019-2020 when it made a pre-tax profit of £264.2m
Jet2 believes opportunities for financially strong, resilient and trusted operators will only increase. Bookings for summer 2022 are encouraging.
Chairman Philip Meeson said: “When the financial year began, very few people could have foreseen the prolonged impact of the Covid-19 pandemic. Having delivered record financial results for the financial year ended March 31, 2020 and with strong advance booking momentum ahead of summer 2020, plus a healthy 'Own Cash' (excluding advance customer deposits) position, our UK leisure travel business – which encompasses Jet2holidays, our acclaimed ATOL licensed package holidays operator and Jet2.com, our award-winning airline – was well placed to deliver another year of strong performance.
“However, in what has proven to be a period of unparalleled operational and financial challenges, the pandemic has had an unprecedented impact on Jet2 plc and the leisure travel industry as a whole.”
The restrictions on international travel imposed by the UK Government, meant its aircraft fleet was fully grounded for approximately 29 weeks of the financial year and operated with a significantly reduced programme when flying was permitted.
Jet2holidays is the UK's largest package holiday operator to many Mediterranean and Canary Islands leisure destinations and Jet2.com is the UK's third largest airline by number of passengers flown.
Mr Meeson said that though the continuing successful rollout of vaccines in the UK and the momentum in Europe are encouraging, the first three months of the new financial year have seen little change in the significant challenges facing the leisure travel industry.
He said the recent announcement of an expanded 'green watch list' and the potential relaxing of restrictions for those who are double vaccinated to be able to travel to amber list destinations without having to quarantine on return, was a welcome step in the right direction
“We are confident that once normality returns, 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 and that Jet2 plc will emerge from this crisis an even stronger company,” he added.
Annual loss for Jet2 group Fri, 09 Jul 2021 07:00:00 +0100-Jet2 reports huge annual loss as pandemic hit sales and profits · Transport Secretary Grant Shapps announcing travel updates today.
Published: 05:20 EDT, 8 July 2021 | Updated: 05:20 EDT, 8 July 2021
Jet2 has revealed it slumped to a thumping £373.8million loss last year as Covid-19 forced it to ground its planes for months on end.
The airline said it had endured 'unparalleled operational and financial challenges' and only carried 1.32million passengers, marking a 91 per cent drop on the year before, when it carried over 14million people across its network.
The group had 370,000 package holiday customers travel on its planes last year, while the year before more than 3million people hopped on board for a break.
Details about how and when fully vaccinated travellers can return from certain countries without having to quarantine are to be set out later today by Transport Secretary Grant Shapps.
Keen to move on: Steve Heapy, the boss of Jet2, called for 'openness and transparency' on coronavirus data
In its financial update today, Jet2 said it had accessed £1billion in additional funding through shareholder and bank support last year to help it survive the pandemic.
The holiday and travel sector has been weighed down by travel bans, uncertainty and rapid rule changes in the past year, prompting, in many cases, mass job cuts, and dwindling sales and profits.
Holidaymakers in England are currently following a traffic light system which dictates if they have to quarantine when they return home, and how many coronavirus tests they have to take.
Shares in the Leeds-based firm have fallen this morning and are currently down 1.05 per cent or 13.00p to 1,225.00p.
A year ago the group's share price was 763.50p, meaning it has risen by around 60 per cent since then.
Looking ahead, Jet2 said it was optimistic that the summer of 2022 would see a 'considerable improvement' in sales, when compared against last year and this year.
It said: 'We are confident that once normality returns, 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 and that Jet2 plc will emerge from this crisis an even stronger company.'
Last month, the cost-cost airline pushed back the resumption of flights and holidays from 24 June to 1 July, following government changes to travel lists, including switching Portugal from the 'green' list to 'amber'.
The firm's boss, Steve Heapy, called for 'openness and transparency' on coronavirus data so that the industry could better understand decisions affecting airlines and their customers.
But, remaining upbeat, Jet2 said today: 'We believe opportunities for a financially strong, resilient and trusted operators will only increase.'
Stinging loss: Jet2 slumped to a whopping £373.8m loss last year, today's figures show
Jet2's chairman, Philip Meeson said: 'Unsurprisingly given the continuing short-term uncertainty, customers are booking significantly closer to departure for summer '21.
'Bookings to date for winter '21/22 are satisfactory, they have slowed more recently given the ongoing 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 with the vaccination progress being made, we are optimistic that summer '22 will be a considerable improvement.'
Neil Shah, director of research at Edison Group, said: 'With the past year being one of the hardest for the airline industry in the recent future, it is no wonder that Jet2 has reported a mixed set of results today.'
He added: 'With the majority of the UK anticipating positive news regarding foreign travel in the near future, Jet2, like many other airlines, will be looking to capitalise.
'However, it still looks that there may be some uncertainty regarding government restrictions, and a complete return to normality could be some way away.
'Undoubtedly there is a demand for tourists to head to the continent in the near future, however, with no firm rules from the UK government, and some form of restrictions looking likely to continue for the next month or so, this summer may not have the surge in popularity airlines like Jet2 were hoping for.'
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– July 9, 2021
Jet2 Annual loss for group