Jet2 reports loss following Covid-19 cancellations

posted on 27th April 2021 by Edward Robertson
Jet2 reports loss following Covid-19 cancellations

Jet2 has warned it faces a group loss of between £375 million and £385 million for the last year thanks to the impact of Covid-19 on operations.

The group, which owns both airline Jet2.com and tour operator Jet2holidays, said the loss would be before foreign exchange revaluation and taxation from continuing operations for the year ending 31 March.

The sum represents a considerable swing on the £264.2 million profit before hedge ineffectiveness, foreign exchange revaluation and taxation from continuing operations the group recorded in the previous year.

Despite the financial difficulties of the last year, the group said it has raised £1 billion in liquidity from a “diversified range of funding sources” while it has also focused on reducing its own cash burn.

As a result, Jet2 said as of 31 March, 2021, it had unaudited total cash of £1,379 million and own cash excluding advance customer deposits of £1,062 million, 104 per cent more than in the year before.

The big reserves are also impressive given the airline and operator have returned £1.3 billion of customer deposits during the Covid-19 pandemic.

The group also added that the vaccination programmes in both the UK and Europe are causes for optimism, although it has demanded more clarity as to what might open and when.

As a result, Jet2 said it is difficult to predict how the forthcoming summer season will pan out and has cancelled all flights and holidays until June 23, despite Brits being promised by the government they can go on holiday again from May 17.