Air Partner has provided an update on initial trading in the financial year beginning 1 February 2020. This is the second update to be given during the COVID-19 pandemic and will be followed by shareholder updates approximately every four to six weeks during the crisis.

The group has had a strong start to the financial year. The unaudited management accounts for February and the flash report for March show that each month generated profits well ahead of both budget and the prior year.

The current indication is that the group has delivered around GBP2.4 million of underlying profit before tax in the first two months of the year, as new business wins from the crisis, such as repatriation contracts, have outweighed a decline in safety and security and European private jet charter during the pandemic.

The group's order book for April is encouraging, with the increase in freight activity witnessed in March continuing. This is driven by the urgent need to move key goods and medical supplies, given the current pressure on supply chains. While it is too early to predict overall activity for the group in April, these freight contracts and continued repatriation work demonstrate the value of the Group's broad spread of aviation activities, offered across multiple markets.

At the end of March, the group has normalised cash in the bank of GBP6.5 million, excluding significant customer deposits and jet card cash. The group has access to a total debt facility of GBP14.5 million, comprising of a GBP1.5 million overdraft and a GBP13 million revolving credit facility (RCF), which is drawn down by GBP11.5 million as at 1 April 2020. The RCF is due to expire in February 2023.

As previously announced, group charter has carried out significant repatriation and evacuation work during the COVID-19 pandemic. Since Air Partner's first update of 18 March, it has supported a number of new businesses, including major cruise and oil companies, to repatriate employees and customers, in addition to continuing to work with the UK government to assist British citizens overseas. Further work of this nature is likely to occur in April.

The global private jets industry is operating at reduced levels. This is mirrored in Air Partner's own customer activity, albeit with the US holding up better, reflecting the size and depth of the market and its customers' habits. Jet card use has slowed in line with the industry.

The freight division has seen a pick-up in demand for the movement of goods to keep global supply chains operating during the pandemic and Air Partner is well placed to mobilise on this activity at short notice. It has, for example, arranged the transportation of vital medical supplies into the United States and is receiving enquires for further logistical support at this critical time.

While Air Partner's long-term contracts in this division remain largely unaffected, as previously reported, training, testing and consulting activities have been significantly impacted by government restrictions on delegate travel, workplace attendance and meetings. This has resulted in associated revenues being delayed. Pleasingly, however, Redline won two new long-term contracts in March and the details of these will be announced shortly.

The board is reminding shareholders that the group owns no aircraft and does not operate as an airline. It continues to tightly manage costs to preserve cash and maintain its working capital. While it has enjoyed a strong start to the financial year, its expectation is that business will now slow as the pandemic continues to restrict aviation activity globally. Accordingly, it has implemented a series of temporary cost management initiatives and made use of the available government grants and benefits to significantly reduce its cost base for the coming months. These include every director taking a voluntary 20 per cent pay reduction for at least the next two months. The combination of a strong start to the financial year, the swift action on costs and its positive cash balance give the board confidence that Air Partner is effectively positioned to cope with the challenges and uncertainty posed by the ongoing COVID-19 pandemic.

The next update is expected to be provided with Air Partner's full year results in May.