Jet2 holidays and flights secured with emergency £172 million cash boost
Jet2 and Jet2holidays are owned by the Dart Group, based in Leeds. It grounded all flights since March, due to Covid, and is planning on re-starting some after the 1st July. Now the company has managed to raise £172 million in a bid to stave off the impact of coronavirus. To raise the money to keep the company afloat, with no flights, it has managed to pool together an extra £172 million by selling almost 30 million shares to investors. These were sold at a price of 576.5 pence per share, with the scheme apparently “significantly oversubscribed”. This may keep the company solvent for the next few months. They hope to be able to encourage as many Brits as possible to take bucket and spade holidays, and city breaks, as soon as possible. Campaigners at Transport & Environment (T&E) have produced a tracker, for state bailouts of airlines in Europe, with details of amounts, conditions etc, which can be seen at https://www.transportenvironment.org/sites/te/files/Airline-bailout-tracker_8_May_2020.pdf
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Jet2 holidays and flights secured with emergency £172 million cash boost
26.5.2020
By Kristian Johnson (Yorkshire Live)
The Leeds-based airline has grounded all flights since March
The company that owns Leeds-based airline Jet2 has managed to raise £172 million in a bid to stave off the impact of coronavirus.
Dart Group is a listed company that owns both Jet2.com and Jet2holidays, with its headquarters based right here in Leeds.
Much like other companies involved in the airline industry, the global coronavirus pandemic has had a damaging impact of its future, with all income currently suspended.
Flights have been grounded since March and will only resume on a limited basis from July 1, two weeks later than initially scheduled.
Although Dart Group is eligible for a share of £300 million in emergency government funding, more money was desperately needed as flights from Leeds Bradford Airport remain impossible.
To raise the necessary money, the company has managed to pool together an extra £172 million by selling almost 30 million shares to investors, according to Insider Media.
Somewhere in the region of 29.8 million shares were placed at a price of 576.5 pence per share, with the scheme “significantly oversubscribed”.
The huge sums raised will provide the company with a buffer to see them through the next few months as passenger numbers continue to dwindle.
‘Jet2.com and Jet2holidays will continue to have a thriving future’
Philip Meeson, executive chairman of Dart Group, said: “The board believes that the proceeds of the placing, together with the recently confirmed Bank of England £300m Covid Corporate Financing Facility (currently undrawn) and the group’s fully drawn revolving credit facility of £100m, will provide the group with additional headroom to deal with this most challenging of trading environments.
“The board remains of the belief that once able to do so, our customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European Leisure Cities.”
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