2007/082006/072005/062004/052003/042002/03Key Documents

Jet2 plc Company Reports

Interim Results 2020

Interim Results 2020

Chairman's Statement

I report on the Group's trading performance for Jet2.com, our award-winning leisure airline and Jet2holidays, our acclaimed ATOL licensed package holidays tour operator, for the half year ended 30 September 2020.

In what has proven to be a period of unprecedented operational and financial challenges, Group operating loss was £111.2m (2019: operating profit £361.5m) with Group loss before foreign exchange revaluation and taxation of £130.9m (2019: Group profit before foreign exchange revaluation and taxation £347.1m). In addition, the Group recorded a profit after taxation from discontinued operations of £28.3m (2019: £2.3m), which included a profit on disposal of its Distribution & Logistics operation, Fowler Welch, of £26.5m. As a result, the total Loss for the period after taxation was £68.7m (2019: total profit after taxation of £278.6m).

Basic earnings per share from continuing operations decreased to (56.9p) (2019: 185.5p). In consideration of the ongoing impact of Covid-19 and the continued focus on liquidity, the Board does not recommend the payment of an interim dividend (2019: 3.0p per share).

At 1 April 2020, the Group had a strong and carefully managed balance sheet with an ‘Own Cash’ balance, excluding customer deposits, of £520.4m and a total cash balance of £1,387.5m. As a result of the impact of Covid-19, our ‘Own Cash’ balance and the careful preservation of it, became a top priority.

A considered but swift response to the pandemic saw cost mitigation measures put in place including: approximately 80% of our UK colleagues initially being put on temporary leave of absence (‘furloughed’) which made full use of the grants available under the UK Government’s Coronavirus Job Retention Scheme (“CJRS”) with similar schemes also in place for many of our overseas colleagues; the cancellation of twelve summer-only third-party leased aircraft; deferral of non-critical capital expenditure; and the freezing of recruitment and discretionary spending. In addition, we also had positive discussions with many suppliers to reduce our monthly outgoings. Despite the CJRS, our monthly salary bill remains a substantial proportion of our overall costs and therefore, we asked all colleagues (including, of course, Directors) to take an ongoing pay cut. Additionally, performance related bonuses earned for the financial year ended 31 March 2020, plus the Discretionary Colleague Profit Share Scheme, were not paid.

We strengthened our cash position in May 2020, by completing an oversubscribed Placing of 20% of the then issued share capital of the Company raising gross proceeds of £171.7m. We also announced the sale of our Distribution & Logistics business, Fowler Welch, for a gross cash consideration of £98.0m on 1 June 2020. In addition, we secured eligibility for up to £300.0m of funding from the Bank of England under the UK Government’s Covid Corporate Financing Facility (“CCFF”).

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