The exclusively business class airline Silverjet is being forced to take out a new loan and sell 20 million more shares after it has revealed massive losses over six months.In total, Silverjet is looking to raise £22 million in funding to enable it to continue operations and as well as issuing new shares, it will take out a £10 million loan.
This new need for money comes as the business-only carrier announced its interim results for the six months to the end of September, revealing losses of £13.1 million on revenues of £30.6 million.
The airline currently runs flights from Luton Airport to New York Newark and Dubai, and says the money will keep it on track for its expansion at Luton.
Silverjet plans to improve its terminal at the airport, expanding the arrivals area from 10,000 to 27,000 square feet, which will give it the capacity to offer five daily flights. With the addition of a new lounge at Newark, the cost of these terminal improvements will reach the £3 million mark.
Lawrence Hunt, Silverjet chief executive, said: “I am delighted with Silverjet’s achievements in our first full six months of trading with our first New York service generating in excess of £12 million of revenue in the period.
“We are experiencing an incredible customer response on both our New York and Dubai routes and achieved a load factor of 80 per cent on our New York route in August. We had 6,782 revenue seats in October, an increase of 38 per cent on September.”
“Many of the risks we faced at IPO have been mitigated and managed and our management team has demonstrated its ability to achieve significant results in a very short space of time.
He added: “In order to roll out our successful business model we are delighted to announce a proposed placing of £12 million, and the support of the Reuben brothers, whose organisation has provided a proposed convertible loan of £10 million, which together will allow us to develop our revolutionary ground experience at Luton and Newark and be the first scheduled airline in the world to offer an exclusive arrival facility for our customers, and to secure our fourth and fifth aircraft to develop our network.”