Jet2 to add more flight capacity despite quarantine regime
Jet2 owner Dart Group said that it would increase its flying capacity over the rest of the summer season, sending its shares up 2.4 per cent this morning.
Despite the coronavirus quarantine restrictions, the London-listed firm said that it was “satisfied with the average load factors and financial contribution” achieved over the summer.
Since restarting services in July, Jet2 has ramped up the number of flights that it is operating, running 40 per cent of its usual service in August.
In a statement ahead of today’s AGM, the budget carrier said that it “will continue to add further capacity, as appropriate, for the remainder of Summer 2020, supported by our quick to market, flexible operating model”.
As with the rest of its competitors in the travel industry, Jet2 is currently contending with the government’s quarantine policy, which has seen a number of key holiday destinations such as France and Spain effectively on a no-go list.
The policy, which has been widely criticised by the aviation industry, will be reviewed today, with Portugal and Greece mooted to be added to the “red list”.
Jet2 also said bookings for next summer were “encouraging”, with average load factors ahead of the same point last year and package holiday sales showing a “material increase”.
However, it warned that bookings for the winter period had not yet matched its expectations. As a result, Dart said that it would keep its prices “enticing”.
AJ Bell investment director Russ Mould said that the admission showed that “it is impossible to accurately gauge demand for travel at present”.
“That suggests it will continue to be a waiting game for airlines, challenging their financial ability to stay afloat until life starts to return to normal.”
Dart said its cash balance currently stands at £1.06bn, down from the end of March when it reported a balance of £1.39bn.
It added that the £300m it had drawn down from the Bank of England’s Covid Corporate Financing Facility was currently unutilised.
Today’s AGM comes as the company has applied to change its name from Dart Group to Jet2, following the sale of its distribution and logistics business.
It also announced that Stephen Heapy will remain the firm’s chief executive.