Jet2 has reported a total net loss of £163.5 million in the six months to end September 2021, compared to a £68.7 million loss a year ago. Group loss before foreign exchange revaluation and taxation increased to £195.1 million compared to £130.9 million in 2020. Group revenue rose to £429.6 million for the half year period, compared to the prior-year result of £299.9 million.
Basic earnings per share decreased to (76.2p) compared to (56.9p) in 2020. Jet2 has not recommend the payment of an interim dividend.
At the end of the half year period, Jet2’s liquidity rose to £2.034bn on the back of successful capital funding rounds. On 3 June 2021, the Group issued £387.4m of guaranteed senior unsecured convertible bonds due in 2026 carrying a coupon of 1.625%, the offering for which was significantly oversubscribed. The initial conversion price was set at £18.06 representing a premium of 40% above the reference share price of £12.90. The Group also secured a new £150million term loan, which matures in September 2023, from its supportive relationship banks.
In late August and early October 2021, Jet2 entered into agreements with Airbus for 51 new firm ordered A321 NEO aircraft with agreed flexibility to extend the order up to 75 aircraft. The firm ordered aircraft deliveries stretch over six years until 2029. Jet2 stated that it retains “flexibility in determining the most favourable method of financing the aircraft, which it expects will be through a combination of internal resources and debt”.
Although seat capacity for the period increased by 86% to 2.68 million seat, the Group’s average load factor fell to 57.3% (2020: 69.0%) with load factors to Amber destinations, primarily popular high-volume leisure destinations, more than 20ppts lower than those for Green destinations, as customers remained anxious they could quickly be changed to Red, meaning enforced quarantine on return to the UK.
As a result, overall passenger numbers for the period increased by 55% to 1.53m, with package holidays forming the majority of sales.
Jet2 claimed £30.1 million under the Coronavirus Job Retention Scheme (CJRS) to support employees.
Net financing expense (excluding Net FX revaluation (losses)/gains) increased by £5.9m with additional interest incurred on financing raised over the previous twelve months, including drawdown of the Covid Corporate Financing Facility (CCFF) of £200.0m, the convertible bond issuance of £387.4m and the new term loan of £150.0m.
Jet2’s capital expenditure for the period of £60.6m (2020: £22.6m) reflected pre-delivery payments made for the Group’s Airbus A321 NEO order, plus continued investment in the long-term maintenance of its existing aircraft fleet, whilst net inflows of cash of £528.0m were generated from the convertible bond issuance and new term loan.
Subsequent to the reporting period, the Group repaid its Revolving Credit Facility of £65.0m and as at 14 November 2021 its ‘Own Cash’ balance, excluding customer deposits, was £1,464.0m, with a total cash balance of £1,975.7m.