Jet2.com has raised £422 million in fresh capital as it seeks to weather the ongoing Covid-19 shutdown of travel.

The company was earlier this week forced to delay its return to operation until mid-April, having previously hoped to begin trips again in March.

The company sold around 40 million shares at £11.80 each, representing around ten per cent of existing capital.

The Leeds-based operation said it had consulted with a number of its major shareholders prior to the action in order to adhere to the principles of pre-emption as far as possible through the allocation process.

Canaccord Genuity and Jefferies acted as joint global co-ordinators, joint bookrunners and joint brokers in connection with the placing.

Cenkos Securities acted as nominated adviser to the company.

Philip Meeson, executive chairman of the group, commented: “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.”