(Peter Byrne/PA)
(Picture: PA Wire)Package holiday business Jet2 sounded a note of optimism for the travel industry today as it planned to order dozens of new aircraft in a deal worth up to £7 billion.
The firm said it had reached an agreement with the world’s largest airliner manufacturer Airbus to purchase 35 of its A320 neo aircraft for $3.9 billion (£3.4 billion), with the option to extend the order to 71 for a combined $8 billion price tag. The company said it had negotiated significant discounts from the base price.
Jet2 said the deal reflects the future anticipated growth of the travel sector, and would be financed through debt and existing resources.
Combined with an earlier order for Airbus A321 aircraft, the deal brings the total number of planes on order by the Leeds-based business to 98, with the ability to extend to 146 in the future.
Bosses at Jet2 have said cash-conscious consumers turning to package holidays during tough times could bring in more customers
Jet2 executive chairman Philip Meeson said the additional aircraft order “provides the company with certainty of supply well into the next decade.
“The order reflects our confidence that we have a much-loved product built on sector leading customer service which we can continue to grow.”
Following the announcement, Jet2 shares gained 0.4% to 737p.
