UK's Jet2 suspends flight operations through late 1Q21

UK's Jet2 nearing Airbus deal - report

Jet2 (LS, Leeds/Bradford) is reportedly close to a deal for around 50 narrowbody Airbus aircraft to renew its near all-Boeing fleet, Reuters has reported citing unnamed sources.

The carrier refused to comment on the report, saying that it was "constantly in discussion with different aircraft manufacturers".

While the report did not identify the types that Jet2 may order, the sources said negotiations were ongoing, and while Airbus was the front-runner, no final decisions have been taken as yet.

According to the ch-aviation fleets advanced module, the British leisure specialist and low-cost carrier currently operates 91 aircraft, of which all but one are Boeings. That number includes seven inactive B737-300s, seventy-five B737-800s, and eight B757-200s. The carrier also operates a single A321-200, which it added in February 2020, without any further commitments for the type. It had earlier wet-leased other Airbus narrowbodies to supplement its in-house fleet during peak summer seasons.

Jet2 does not have any outstanding orders placed either with manufacturers themselves or...

Jet2 to raise another £537mn as UK travel ban persists

Jet2 (LS, Leeds/Bradford) parent Jet2 plc has moved to bolster its balance sheet by GBP537.4 million pounds (USD756 million) as the wait continues for the British government to allow a full-scale return to outbound leisure travel.

The tour operator has cancelled all of its holidays until at least June 24 due to the ongoing “short-term uncertainty,” but “we remain encouraged by the volume of customer bookings to date for both Winter 2021/22 and for Summer 2022,” it said in a stock exchange filing.

It has signed a new GBP150 million (USD211 million) term loan agreement maturing in September 2023 and is launching an offering of GBP387.4 million (USD545 million) worth of guaranteed senior unsecured unrated convertible bonds due in 2026.

The bonds will be issued in principal amounts of GBP100,000 (USD141,000) each and will carry a coupon of 1.625% per year payable semi-annually in June and December.

“The proceeds of the issuance of the convertible bonds will be used to strengthen Jet2’s balance sheet further and position the company for a strong...

UK's Jet2 defers relaunch to early 3Q21

British low-cost leisure carrier Jet2 (LS, Leeds/Bradford) has announced it is restarting flights on July 1, 2021, in spite of the UK’s controversial “traffic light” system classifying the safety of overseas destinations.

The UK travel sector has urged the government to drop the system which rates countries according to COVID-19 risk. The World Travel and Tourism Council this week labelled the scheme as “incredibly disruptive”, saying it was wreaking havoc on business. This comes as Portugal (including the Azores and Madeira) was moved from the green list to the amber list on June 8 after just two weeks, sending holidaymakers scrambling back to the UK to avoid quarantine.

“We agree that public health must be the number one priority. However, despite all the evidence and data showing that travel can restart safely and at scale, the UK continues to remain largely grounded whilst the rest of Europe opens up,” commented Jet2 Chief Executive Officer, Steve Heapy.

Consequently, the carrier was restarting its flight programme to the English Channel island of Jersey – part of...

UK's Jet2 set to tap into CCFF facility with £200mn issuance

Jet2 plc will go ahead with the issuance of GBP200 million pounds (USD278.55 million) worth of commercial paper after it was recently re-confirmed as an eligible issuer for the Bank of England's COVID Corporate Financing Facility (CCFF). Unveiled last year, the CCFF provides funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms making a material contribution to the UK economy. The facility offers financing on terms comparable to those prevailing in markets in the period before the Covid-19 economic shock and is open to firms that can demonstrate they were in sound financial health prior to the onset of the pandemic.

As such, the parent of Jet2 (LS, Leeds/Bradford) and Jet2holidays said last week that the UK Treasury had confirmed it did meet the updated pre-Covid investment grade requirement and that it will therefore issue the full amount of commercial paper through the CCFF prior to the closure of the scheme on March 22, 2021. Proceeds will be used to provide standby liquidity if required.

"Our liquidity position is...