27th Apr 2021 09:58
(Alliance News) - Jet2 PLC on Tuesday guided to a loss for its recently ended financial year, but noted that the rollout of vaccines is "encouraging".
The airline and package holiday operator expects to report a loss before foreign exchange revaluation and tax from continuing operations for the financial year ended March 31 between GBP375 million and GBP385 million, swinging from a profit of GBP264.2 million the year before.
During the year, Jet2 said it raised close to GBP1.0 billion in liquidity to mitigate the impacts of the Covid-19 pandemic. In addition, it undertook actions internally to reduce cash burn and preserve cash. As a result, the company's liquidity position is "strong", it said, with cash position as at the end of March comprising unaudited total cash of GBP1.38 billion and "own cash" - which excludes advance customer deposits - of GBP1.06 billion.
The UK's vaccine rollout and increasing momentum in Europe are both encouraging for the financial year ahead, Jet2 said, though it highlighted uncertainty over the UK government's proposed Covid-19 travel restrictions for the 2021 summer season.
"Unsurprisingly given the short-term uncertainty, customers are booking significantly closer to departure for Summer 21. However, we continue to be encouraged by the volume of customer bookings for both Winter 21/22 and for Summer 22, for which package holiday bookings are displaying a materially higher mix of the total," it said.
Jet2 shares were trading 3.9% higher in London on Tuesday at 1,471.00 pence each.
By Evelina Grecenko; [email protected]
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