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(Alliance News) - Jet2 PLC on Thursday said it swung to a loss in the first half of its financial year as Covid-19 travel restrictions caused revenue to plummet.
Shares in Jet2 were down 5.4% at 1,309.00 pence in London at midday. The stock is down 23% so far in 2020.
The Leeds-based leisure travel firm, formerly known as Dart Group PLC, posted a GP119.3 million pretax loss for the six months ended September 30, swinging from a GBP337.0 million profit a year before.
Revenue shrank 88% to only GBP299.9 million from GBP2.53 billion after "a period of unprecedented operational and financial challenges" as the Covid-19 pandemic resulted in lockdowns and travel restrictions.
Jet2's aircraft fleet was grounded in mid-March and operations resumed July 15, once the UK government lifted quarantine restrictions for an approved list of countries.
Executive Chair Philip Meeson said the company is expecting winter seat capacity to be around 50% lower year-on-year, noting that "with travel advice remaining uncertain, we expect forward bookings to continue to display a pronounced shorter lead time than in previous years".
"Whilst the recent positive news about a potential vaccine was welcome, we continue our cautious approach to summer 2021. Current seat capacity is close to summer 2019 levels, and we are on sale to all our popular Real Package Holidays leisure destinations," said Meeson.
This followed Tuesday's news from budget airline easyJet PLC that is had posted its first annual loss in its 25-year history, the coronavirus crisis having grounded its fleet and hammered demand for travel.
By Anna Farley; annafarley@alliancenews.com
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