Jet2 targeting summer 2021 capacity 'close to summer 2019'

Executive chairman Philip Meeson will address the company’s annual general meeting on Thursday (3 September) to detail the group’s financial position, and formally confirm plans to rebrand Dart Group following the sale earlier this year of its only non-leisure operation, distribution and haulage firm Fowler Welch.

"After grounding our aircraft fleet in mid-March, we were pleased to resume operations on 15 July, gradually ramping up summer 2020 flying to approximately 40% of our planned destinations for August, ensuring we could provide as many of our customers as possible with their well-deserved and eagerly anticipated summer holidays," said Meeson in a note to the stock exchange."

Meeson said Jet2 would seek to add additional summer 2020 capacity, which it would be able to bring to market quickly thanks to the flexibility of its operating model.

"While there have been setbacks, such as the imposition of quarantines and evolving guidance from the UK government, we have been satisfied with the average load factors and financial contribution achieved to date and will continue to add further capacity, as appropriate, for the remainder of summer 2020, supported by our quick to market, flexible operating model."

Looking ahead, Meeson revealed some concerns about the winter season. "Winter 2020/21 forward bookings have yet to match our revised on-sale seat capacity, with customer bookings displaying a shorter lead time than in previous years," he said.

"Therefore, pricing for both our leisure travel products - end-to-end package holidays with Jet2holidays and flight-only seats with Jet2.com - will need to remain consistently enticing."

Jet2 though is already working on plans to bounce back next summer, said Meeson. "For summer 2021, we plan to fly to all our popular leisure destinations with an appropriate, tailored level of service, which we anticipate will be close to summer 2019 seat capacity levels.

"Bookings to date are encouraging, with average load factors ahead of the same point last year and package holiday customer numbers as a proportion of total departing customers showing a material increase."

Meeson also revealed the group’s total cash balance was £1.064 billon as of 28 August, down from £1.387 billion on 31 March, while its own cash balance (which excludes customer deposits) sat at £629 million, up from £520 million at the end of March.

"We will continue to take every step necessary to preserve cash and enhance liquidity to ensure both Jet2.com and Jet2holidays are equipped to deal with this most challenging of trading environments and also best positioned for a return to full operations in a stable financial position," Meeson added.