Airline Jet2 has raised £422m from the Stock Exchange as it aims to get through the coronavirus pandemic.
The aviation sector in which the Leeds firm operates has been among those hardest hit by various local and national lockdowns. Ministers this week warned that people should not be booking overseas holidays.
Jet2 made 35.2m placing shares and subscriptions for 594,000 retail shares available at a price of 1180p, a discount of 9.1%.
It said the offering had been 'significantly oversubscribed' and that the £422m raised would help it through the coming months.
Executive chairman Philip Meeson said: “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."
The challenges facing the aviation industry were brought home this week when Heathrow chief executive John Holland-Kaye said aviation businesses have gone for almost a full year with virtually no revenue.
“Businesses cannot keep going like that,” he said.
Passenger numbers between July and September were down by more than 84% compared with the same period in 2019.
