Signature Aviation struggles under COVID conditions

The price of shares in FTSE 250 services firm Signature Aviation (LON:SIG) dropped by 2.43% to 221p (as of 13:05 BST) after the company posted an update for the half year ended 30th June. Flying levels have improved over the last few months but remain heaving suppressed and like-for-like revenues were down by 31% solely due to COVID.

CEO Mark Johnstone commented: “Since our AGM statement in mid-May, flight activity across our global network has continued to show an encouraging recovery and, in the US, with the support of the CARES Act, we have now called back all our furloughed staff. As we look forward, I remain confident in the resilience and potential of our market leading FBO business model, the quality of our unique network, the strength of our liquidity and therefore our ability to continue to invest in and grow our attractive and high return business. Thus, we are delighted to have recently reached an agreement to acquire two FBOs in Switzerland, including Geneva, which is a highly strategic addition to our network. Finally, and as a precautionary measure given the macroeconomic uncertainties, we have secured a covenant waiver from our relationship banks for December 2020 and June 2021“.