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Sumamry
- JET2 expects FY21 total losses ranging from negative £375 million to negative £385 million.
- JET2 had decided to extend the suspension of the flights from 17 May 2021 to 23 June 2021.
- JET2 had unaudited total cash of £1,379 million as of 31 March 2021.
Jet2 PLC (LON:JET2) is the LSE listed travel & leisure stock. JET2’s shares have generated a return of around 138.54% in the last 12 months. The Company is listed on the FTSE AIM UK 50 index.
On 08 July 2021, the Company will announce full-year results for FY21 ended 31 March 2021.
Company Overview
Jet2 PLC (LON:JET2) is a UK based Travel & Leisure Company, which specializes in package holidays licensed by ATOL (“Air Travel Organizer Licensing”). The Company was previously known as Dart Group PLC.
A brief about Airlines Industry
The Global Airlines industry consisted of airlines that assist passengers in the movement from one place to another on a domestic and global level. Furthermore, Cargo that is transported within passenger aircraft is also included in this industry. However, dedicated cargo is not a part of this industry. Moreover, the aviation industry is shifting towards automation with continued technological advancement in the industry. According to the recent report by Grand View Research, the global aviation IoT market size would be anticipated to grow at a CAGR of 21.4% from 2021 to 2028 and reach USD 22.51 billion by 2028.
Trading Update (as of 27 April 2021)
The Company had anticipated reporting a loss before foreign exchange revaluation and taxation from continuing operations for the amount ranging from negative £375 million to negative £385 million for FY21 ended on 31 March 2021. Moreover, JET2 had raised close to £1.0 billion because of the stringent management actions to mitigate the adverse impacts created by the Covid-19 pandemic. Nonetheless, the Company had achieved an adequate liquidity position with unaudited total cash of £1,379 million as of 31 March 2021.
Recent Developments
On 12 March 2021, JET2 reconfirmed that it had been an eligible issuer for CCFF (“Covid Corporate Financing Facility”) up to £200 million. The Company would aim to issue the full amount of commercial paper before the closure on 22 March 2021.
On 12 February 2021, JET2 announced the completion of fundraising and raised around £422 million of total gross proceeds through 593,561 Retail Shares and 35,166,654 Placing Shares of 1,180 pence per ordinary share.
Share Price Performance Analysis of Jet2 PLC
(Source: Refinitiv, Thomson Reuters)
JET2 shares were trading at GBX 1,455.50 and were up by close to 2.83% as of 27 April 2021 at 12:29 PM GMT. JET2’s 52-week Low and High were GBX 429.80 and GBX 1,524.00, respectively. Jet2 PLC had a market capitalization of around £3.04 billion.
Business Outlook
The Company had shown a significant decline in financial performance during the first half of the financial year 2021. Both the top-line and the bottom-line performance for the period had declined, with profitability remained in the negative zone. On an encouraging note, JET2 had received a robust volume of customer bookings for the flights during Winter 2021 and Summer 2022 despite several operational headwinds created by the Covid-19 pandemic and heavy losses expected for FY21. Furthermore, the Company had highlighted regarding the accelerated rollout of vaccines in the UK and Europe, which had built encouraging momentum so far. However, JET2 also pointed out its disappointment over the lack of clarity on international travel restrictions and the duration of the Covid-19 pandemic. Thus, the Company had decided to extend the suspension of the flights from 17 May 2021 to 23 June 2021.
