Jet2 plc is looking to secure a further £537 million to bolsters its finances with travel still yet to take off in any significant volumes some 15 months into the Covid crisis.
The airline and operator has secured a new £150 million loan, and hopes to raise an additional £387 million through a bond offering.
It comes in addition to the £1 billion Jet2 has already raised over the past year, which includes securing £200 million from the government’s Covid corporate financing facility.
Jet2 said its liquidity position was "strong" as of 31 March, with total cash of £1.38 billion and own cash, excluding customer deposits, of £1.06 billion – double the levels at the end of its 2019/20 full-year (to 31 March 2020).
Unlike rivals Tui and easyJet holidays, Jet2.com and Jet2holidays opted earlier this year to suspend its flight and holiday programme until 24 June rather than bank on the government permitting a limited resumption of international leisure travel from 17 May.
Portugal was the only recognisable, viable destination to make the government’s first green list, with the majority of Jet2 and its rivals’ core destinations placed on the amber list.
"Unsurprisingly, current customer booking trends for summer 2021 reflect the availability of truly accessible, UK government approved destinations," said Jet2 plc in a trading update.
"However, given the continued short-term uncertainty, we remain encouraged by the volume of customer bookings to date for both winter 2021/22 and for summer 2022, for which package holiday bookings are displaying a materially higher mix of the total."
Jet2 said despite only limited visibility on the outlook for the leisure travel landscape, it was confident a gradual return to normality would swiftly see people keen to return to destinations in the Mediterranean, as well as the Canaries and European cities.
The firm said the proceeds from the bond offering, specifically, would be used to further strengthen its balance sheet and position the company for a strong recovery as lockdown restrictions are lifted through fleet growth and renewal opportunities.
Along with the loan, Jet2 plc added: "These transactions further improve the ability for Jet2.com and Jet2holidays to capitalise on any upturn opportunities, benefiting all stakeholders."