Trading Statement

10 November 2020

Q3 Trading update

Signature Aviation plc ("the Group"), a market-leading provider of global aviation support services, is pleased to announce a trading update for the period 1 January 2020 to 31 October 2020, unless otherwise stated.

· B&GA flying activity has been relatively stable since our last market update in early September

· In October, US flight activity across our network was at 80% of prior year levels

· We continue to lead our industry in working towards our sustainable future through our Signature Renew programme. In October, we launched San Francisco as the first FBO in the world with a permanent Sustainable Aviation Fuel (SAF) supply

· Continued tight focus on costs at both corporate and at individual FBOs to best align with flight activity

· Liquidity continues to be strong, at the end of October, the Group had total facility headroom and cash of $462 million.

Mark Johnstone, Signature Aviation CEO commented "Despite the continued challenges presented by the pandemic, I am encouraged that the recovery in flight activity across our network has stabilised at c. 80% of prior year levels, which we currently assume to continue for the balance of the year. As previously stated, our effective cost management and the support secured through the CARES Act in the US underpin an expected improved financial performance in the second half compared to the first half.

We continue to invest in our future, and I am delighted that we have recently launched Signature Renew, our global sustainability initiative to innovate and invigorate both our own, and our customers' journeys to net-zero carbon emissions. Under the Signature Renew initiative we have made great progress in the period with the launch of permanent SAF supplies at two key locations, enabling our customers to fly more responsibly.

I continue to be impressed by the resilience of our Signature teams in adapting to the pandemic and the necessary changes in working practices and hours to align with the short-term business mix changes we have experienced. The dedication of our employees and our Signature Assure programme have enabled us to continue to operate safely at all locations throughout the pandemic. Our market-leading FBO business model, the quality of our network and the strength of our liquidity underpins our ability to continue to invest in and grow our business as we navigate the pandemic, allowing us to emerge in a position of strength."

Business & General Aviation (B&GA) Market update

We continue to outperform the B&GA market at the airports from which we operate. Our network weighting to the North East (NE), which through-cycle is a clear strength, is in the short-term driving underperformance to the broader US market. We currently expect this underperformance to continue but are confident that the Signature network remains well placed to return to outperformance, against the overall US B&GA market, as the NE, business travel and international traffic recover.

Revenue for the continuing Group (Signature and EPIC) was down 38% in the ten months to 31 October. On a like-for-like basis (constant currency, adjusting for lower fuel prices and acquisitions and disposals) Group revenue was down 30% for the same ten-month period. On a like-for-like basis Signature revenue was down 27% for the ten months to 31 October, representing a slight improvement compared to the first half.

The recovery in flight activity across our network has stabilised at around 80% of prior year levels and we have yet to see any material changes in the recent customer mix, which continues to be weighted towards leisure destinations and small and mid-size jets. For the remainder of the year, we expect flight activity across our network to remain around these levels with broadly the same customer mix. As previously stated, our effective cost management and the support secured through the CARES Act in the US, underpin an expected improved financial performance in the second half compared to the first half.

The CARES Act labour obligations ended on 30 September and we are now unrestricted in our ability to align our labour hours with current levels of flight activity across our FBO network and will continue to manage our cost base accordingly.

Signature Renew is our global sustainability initiative introduced to innovate and invigorate the journey to net-zero carbon emissions. We are pleased to report that we have made good progress during 2020 in sourcing Sustainable Aviation Fuel (SAF) to enable our customers to fly more responsibly. Through Signature Renew we have partnered with Neste, a leading producer of renewable products and NetJets, our largest customer to accelerate the adoption of SAF within business aviation. Neste has agreed to supply Signature with millions of gallons of SAF at San Francisco (SFO), which is the world's first SAF supplied FBO location. We will also supply SAF at London Luton and we are working hard to ensure other locations follow. NetJets joins us as Signature Renew's first major SAF client, committing to purchase up to 3 million gallons of SAF to fully supply both its SFO fuel needs as well as its total supply back at its global headquarters at Columbus International.

Liquidity and balance sheet position

At the end of October our RCF facility was drawn by $25 million, leaving $375 million of undrawn facilities plus cash held of $87 million. This represents total cash and available facilities of $462 million. This is after funding the acquisition of Geneva and Sion in July and the settlement of the final tax liability on the disposal of Ontic for $63 million, also in July.

ERO

Our ERO business continues to operate as expected. In the ten months ended 31 October 2020 revenues were down 8% compared to the prior year. On a like-for like basis (adjusting for constant currency) revenue was also down 8%.

The ERO disposal process is ongoing and we will update the market in due course.

Outlook

As previously stated, we expect an improved operating performance in the second half, compared to the first half, assuming that flight activity continues to run around 80% of 2019 levels.

The Board remains confident in the resilience of our market leading FBO business model, the quality of our network, the strength of our liquidity and therefore our ability to continue to invest in and grow our business.

Notes:

The Group will publish its preliminary results for the year ending 31 December 2020 on 2 March 2021.

Enquiries:

Signature Aviation plc

David Crook, Group Finance Director

Kate Moy, Head of Investor Relations and Communications

(020) 7514 3999

Tulchan Communications

David Allchurch/ Suniti Chauhan

(020) 7353 4200

Information on Signature Aviation plc

Signature Aviation plc is a market leading, global aviation support and aftermarket services provider, primarily focused

on servicing the Business and General Aviation (B&GA) market. We support our customers through our principal

business Signature and Global Engine Services/Engine Repair and Overhaul (ERO).

Signature, including Signature FBO, TECHNICAirTM and EPIC Fuels, provides premium, full-service flight and home

base support including refuelling, ground handling and MRO services through the world's largest fixed base operation

(FBO) network for B&GA users with around 200 locations covering key destinations in North America, Europe, South

America, Caribbean, Africa and Asia. EPIC Fuels is a provider of aviation fuels, supplies and services operating at

more than 200 locations.

On 1 March 2018, the Company announced that it was conducting a strategic review of the ERO business and, at the

end of May 2018, management committed to a plan to sell substantially all of the business and the relevant assets

and liabilities were classified as held for sale. The sale process is ongoing.

On 22 November 2019, the Company changed its name from BBA Aviation plc to Signature Aviation plc.