Jet2 has raised £422m from investors to shore up their finances as flights have been cancelled through to 15 April in response to travel restrictions amid the pandemic.
The airline issued 35.8m placing share and 593,561 subscription shares at 1,180 pence per share, which saw the value of the company shares slump on Friday.
Jet2 said that fundraiser covered shares worth 20% of the company’s capital which was “significantly oversubscribed.”
et2 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.”