Jet2 expect to incur costs of £109 million following the grounding of flights in the wake of the coronavirus pandemic.
All operations at the airline and tour operator are currently suspended for an indeterminate period of time, though holidays from June 17th remain on sale.
In the longer term, the company said it was unable to assess the costs related to Covid-19, as the impact and duration of of the pandemic remains difficult to determine.
Jet2 said 80 per cent of employees based in the UK have been put on temporary leave of absence, in order to make full use of the grants available under the coronavirus job retention scheme offered by the government.
All staff, including directors, will also take a 30 per cent pay cut from now until September.
In response to the cut in flight, the company has also cancelled all 12 summer-only third-party leased aircraft.
On a more positive net, Jet2 said it had made a profit of between £265-270 million for the financial year ended March 31st, up 49 per cent on the previous year.
Customers are still making bookings for late summer and winter this year, Jet2 said, with encouraging numbers choosing to rebook rather than cancel.