Jet2.com flying programme suspended till at least May

Leeds-based Dart Group, which owns the airline Jet2.com, says it is accelerating measures to cope with the financial impact of the coronavirus pandemic.

It has issued a trading update for the year ending 31 March 2020 and the year ending 31 March 2021, noting that it has had to suspend its flying programme until at least 1 May 2020.

It adds: “Given the current situation and the wide range of intangibles with which we are now faced, including concern for our hotel partners with whom we have placed deposits to secure hotel rooms for the summer 2020 season, we now have reduced visibility on the financial implications for our company.

“The Board has today decided to withdraw its previous profit guidance issued on 11 March 2020, and will provide a further update in relation to the FY20 profit outturn once circumstances become clearer.

“The Board has no clarity as to how this will affect Group profit before foreign exchange revaluation and taxation for the financial year ending 31 March 2021.

“Although we have a strong and prudent balance sheet with a £1.5bn cash balance at 18 March 2020 and long-term structured debt in relation to aircraft financing, given the escalating situation we have accelerated actions to underpin the stability of our business and improve cash flows.

“This includes a reduced flying programme beyond 1 May 2020, freezing recruitment and discretionary spending and deferring all non-regulatory capital expenditure.

“In addition, we are in ongoing discussions with existing liquidity providers who recognise the strength of our business model.”