Jet2 eyes greener future with Lloyds Bank’s first sustainability-linked foreign exchange agreement

Lloyds Bank has completed its first sustainability-linked foreign exchange agreement to support leisure travel company Jet2’s decarbonisation ambitions.

The sustainability-linked agreement provides further evidence of Jet2’s determination to deliver on its ESG goal of reducing its gCO2 emissions per passenger kilometre travelled. This measure, which is the standard sustainability metric used within the aviation industry, will be calculated using third party verified carbon emissions data.

Lloyds Bank has worked closely with Jet2 to support its sustainability mission in recent years, including a refinance of its existing revolving credit facility to transition to a sustainability-linked loan last year.

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The Leeds-based business employs approximately 12,000 people across the UK and provides holidays to leisure destinations across the Mediterranean, Canary Islands and European Leisure Cities and flew over 16 million passenger sectors in the 12 months to March 31, 2023.

A Jet2 aircraft. Picture: PASCAL PAVANI/AFP via Getty ImagesA Jet2 aircraft. Picture: PASCAL PAVANI/AFP via Getty Images
A Jet2 aircraft. Picture: PASCAL PAVANI/AFP via Getty Images

Annabel Finlay, head of food, drink and leisure at Lloyds Bank, said: “With fewer options immediately available to airline operators to reduce their carbon footprint compared to other industries, it is essential they have access to support and alternative ways to become more sustainable.

“That’s why we have worked hard to ensure we can best support Jet2 to meet its ambitious sustainability plans and we are proud to make our debut in the sustainability-linked FX (foreign exchange) world while doing so.”Mark Buxton, director of group finance and treasury at Jet2, added: “The aviation industry is working hard on options to reduce its carbon footprint. Together with our recent agreement with Airbus to acquire up to 146 Airbus A321/A320neo fuel efficient aircraft and an equity investment made to secure SAF supply from a UK based production plant, working closely with our banking partners is another of the many important components of our journey to Net Zero by 2050.

“The route to a more sustainable aviation industry will have many challenges, and our longstanding relationship with Lloyds Bank has been invaluable as we actively pursue our sustainability targets.”