Dart Share Discussion Threads

[senn1] 27/7/2020 19:45

Jet2holidays will operate 20 fewer aircraft in 2021, equating to a 20% reduction from its pre-Covid 2020 capacity.

Speaking exclusively to Travel Weekly on a Roadmap to Recovery webcast, chief executive Steve Heapy described the move as a “sensible contraction” and urged the rest of industry to approach next year with care.

“I think 2021 has got to be a year of caution. And it’s got to be a year of companies strengthening their balance sheets and strengthening their resilience,” he said.

“At the moment, we’ve got to be very, very careful. We’ve got to be very cautious about the decisions we make because we could be, in two weeks’ time, in lockdown again; there could be a second spike in winter; there could be countries that are off limits next year; or there could be social distancing that’s put in place on aircraft which will effectively drop our load factor to 50 or 60%.”

Heapy warned companies needed to use 2021 to become more financially robust to overcome “more bumps in the road”.

“This has highlighted that things can be very severe; have massive consequences and I think the whole industry needs to put more time and effort into making themselves more financially robust to be able to handle these storms,” he warned.

Heapy said Jet2holidays was “well-capitalised” to cope and survive not just this crisis, but further upheaval.

“We’ve got cash in the bank. We will be able to weather storms that come our way in the future,” he said. “Of course, the big question is, when do the storms happen and how severe will they be? If we have another lockdown for three or four months in the future, then obviously that will impact all companies. But we are well-placed to weather any more storms, future lockdowns, etc.”

Heapy added: “We’ve put a lot of work into strengthening the company. We already had a very robust balance sheet. We were able to take advantage of the government’s £300 million pounds CCF scheme [Covid Corporate Finance Scheme]; we did a placing to the stock market that raised money and we sold a subsidiary company.

“That has all raised cash which we’re not splurging on share buybacks, we’re not spending it on things; it’s going to go in the bank and it’s going to make sure that we’re able to weather any storms that hit us in the future.”

Speaking about the reduction in capacity and the resulting impact on staff numbers, Heapy said: “We have downsized. We’ll be operating fewer aircraft in summer 2021 than we’d anticipated for summer 2020. We’ll have close to 20 fewer aircraft, so there is a requirement unfortunately, for less people to operate that programme. But if things settle down, I would hope that one day in the future, we’ll be back in growth mode.”

Heapy said the industry collectively needed to “put more effort into making itself more robust”.

“We can’t be in a situation where three days of sunshine (in the UK) and companies are struggling. We’ve got to build long-term businesses that can handle this. I’ve been in travel for quite a long time. There’s been lots of things that have massively impacted demand over the last 20 years. Gulf War 1, Gulf War 2, Afghanistan, 911, 7/7, volcanoes, the financial crash – loads of things, and they’ve all massively impacted demand.

“It’s not a matter of if you hit a bump in the road, it’s when and how big it’s going to be.”

Asked if he felt the industry had passed the worst of the Covid-19 ‘bump’, Heapy said: “I hope so. But one thing’s for sure, there will be more bumps in the road. We just don’t know how far ahead they are and how big they’ll be. So as an industry, we’ve got to put more effort into making sure our businesses are robust and that they can stand up to shocks that come our way.”

Heapy stressed that even with the reduction in capacity outline, there would be no shortage of flights and holidays available next year.

“We’re just tightening it up a bit. There will still be millions of seats. But it’s a sensible contraction,” he said, adding that the company would not be placing any new aircraft orders in the near future.

“We’ve taken all our aircraft that were on order. We’ve got no more in the pipeline,” he said. “We’ll be standing still for a while and then when the future looks slightly more predictable, then we’ll have an eye on growth again, I’m sure.”

[senn1] 27/7/2020 19:44

Doris look at the travel weekly Heapy interview he says less staff needed for 21

[senn1] 27/7/2020 19:43

Doris look at the travel weekly Heapy interview he says less staff needed for 21

[jfb1510] 27/7/2020 19:31

Scottish it's because Johnson is a Muppet operated by the Barnard Castle Eye Test. This is the worst Westminster Govt in my lifetime.Echo what you say about the staff i feel for them.

[scaff55] 27/7/2020 19:27

Sturgeon does not need to follow the rest of the Uk with the essential travel to Spanish islands and (you know she might just do that,?) not to save Scottish jobs but just to be different from the rest of the UK and also more important, get some more attention for Nicola .

[ruston bucyrus] 27/7/2020 19:22

How can one 'buy nothing' ?

Surely you meant .. 'I won't buy ANYTHING'

Such an oaf 🙄

[festario] 27/7/2020 18:59

I think I'll buy nothing.... maybe RENT a caravan!

[scottish007] 27/7/2020 18:57

Think l’ll buy a caravan

[scottish007] 27/7/2020 18:56

Unlike some on here my heart goes out to the Staff if more jobs go but twenty less planes has gotta mean less Staff.
Really confused re Balearics and Canaries position from Jet2 also the UK government updating foreign office position/confirming quarantine on said islands. They must now cancel holidays to the islands.
How on earth can Boris take what equates to the moral high ground with the Spanish Islands when you look at the figures in England.
Yes there has been a spike in numbers but it is predominantly in the North of Spain.
Spain has in fact averaged 3 deaths per day for the last week.
Confused.

[conardj] 27/7/2020 18:41

bozo and cummings must be replaced now. killed 20,000 and intent on destroying the uk. traitors should be arrested and sent to prison

[senn1] 27/7/2020 18:31

FCO now includes Spanish islands

Only essential travel not good

[32campomar] 27/7/2020 17:37

Jet2 have cancelled all flights to Faro until at least August 16th

[scaff55] 27/7/2020 17:29

About a 50p drop great call tiger.

[senn1] 27/7/2020 17:10

Scottish

What did you make of Heapy comment

're 20 less aircraft to result in less staff for 21 more job cuts?? 26 was a tickle before getting this part summer done with before the big axe??

[scottish007] 27/7/2020 17:08

They clearly have had some indication re islands

[scottish007] 27/7/2020 17:06

Jet2 cancelled for Costa de Almeria, Alicante, Malaga and Murcia until 16th Aug.
Balearics and Canaries continue as scheduled.

[senn1] 27/7/2020 17:05

All flights and hols canx to Spain just out

[jfb1510] 27/7/2020 16:24

The dark arts are at play, Cummings dabs are all over this. Spain gets air bridges to the Islands and The Muppet and his mates at No10 get help with an EU trade deal from Spain.So we have a targeted approach to future quarantine. Handy cos when USA opens up Trump won't want quarantine on NY for outbreak in Nevada esp if Muppet 1 wants a trade deal with USA.

[npp62] 27/7/2020 16:17

It's the risk of change of direction that'll put people off booking. Not the virus.

[senn1] 27/7/2020 16:14

Is the UK Government run by clowns?

Now there saying they may put the islands back on the list only 2 days after taking them off some time this week

try studying the data errr hello why not study the data before you made the decision fxxxcwitts or what on the islands then just ban the mainland.

Has the bojo lot got any respect for people at all. changing lime the wind from day to day

if you going to ban a country it should
be for months not days otherwise what's the friggin point of it all

[shanklin] 27/7/2020 15:44

Sadly, given its a great company, any involvement in DTG currently is like "investing" in the output of a random number generator