Jet2 raises around £422m through fundraising to support growth

Jet2 plc said it had successfully raised total gross proceeds of approximately £422 million through the fundraising, which was significantly oversubscribed.

In a statement, Jet2 plc said: The fundraise shares being issued represent 20 per cent. of the existing issued ordinary share capital of Jet2 immediately prior to the fundraise.

"The company consulted with a number of its major shareholders prior to the fundraise in order to adhere to the principles of pre-emption as far as possible through the allocation process and is pleased by the strong support it has received from existing shareholders and new investors.

Canaccord Genuity and Jefferies acted as joint global co-ordinators, joint bookrunners and joint brokers in connection with the placing. Cenkos Securities plc acted as nominated adviser to the Company.

Philip Meeson, executive chairman of the group, commented: "The board is grateful to both existing shareholders and new investors for their significant support of this equity issue.

"Based on the indicative scenario planning undertaken by management, the board believes that the proceeds will provide sufficient liquidity on an extended and likely unpredictable shutdown basis to deal with this continually challenging trading environment.

"Furthermore, the directors believe the fundraise will enable management to continue to adopt a decisive, but prudent, responsible financial management approach; take longer-term strategic decisions to support sustainable long term profit growth; and improve the ability for Jet2 to exit the pandemic in a stable commercial position so that it is well positioned to capitalise on the upturn opportunity when it arrives.

"The board remains of the belief that once able to do so, our customers will be determined to enjoy the wonderful experience of a well-deserved Jet2 holiday and that Jet2.com and Jet2holidays will continue to have a thriving future, taking millions of UK holidaymakers annually to the Mediterranean, the Canary Islands and to European leisure cities."

Last year, the Jet2holidays and Jet2.com owner – formerly called Dart Group – reported operating losses of £111.2 million for the six months to September 30 2020, against earnings of £361.5 million a year earlier, in what would normally be its busiest trading period.

Jet2 has cancelled its flight programme through to April 15 in response to the latest set of UK travel restrictions, which have been imposed in a bid to halt the pandemic.

The Government has launched costly measures for travellers, including hotel quarantine and multiple Covid-19 tests for incomin