Dart Group pulls final divi, sees 'promising' 2021 bookings

Dart Group pulled its final dividend but reported "promising" 2021 summer holiday bookings for its Jet2 Holidays unit, despite the Covid-19 pandemic.

The Jet2.com owner said it had furloughed 80% of its workforce and drawn down on a £100m revolving credit facility in order to weather the financial impact of the crisis.

"Positively, and despite the considerable uncertainty, we are seeing customers still making bookings for late summer 20 and winter 20/21, with encouraging numbers choosing to rebook rather than cancel. In addition, and though very early, summer 21 bookings to date are very promising," Dart Group said on Friday.

The AIM-listed group said it has taken other steps to reduce costs in the meantime - including lowering executive salaries and making full use of government grants.

"From 17 June 2020, we are on sale with a reduced flying programme and, as a consequence, have cancelled all 12 summer-only third-party leased aircraft. In addition, non-critical capital expenditure has been deferred, recruitment and discretionary spending has been frozen, and contractors have been terminated," said Dart.

The company expected to report a full year pre-exceptional group profit before foreign exchange revaluation and taxation of somewhere between £265m to £270m - an increase of approximately 49% year-on-year.

(Writing by Frank Prenesti; Editing by Michele Maatouk)