Jet2 dodges airlines malaise as budget carrier raises profit forecast
Jet2 owner Dart Group today bucked the current airlines malaise, raising its profit forecast for the second time in six months despite the pressure being exerted on the aviation industry by the coronavirus outbreak.
In a trading update, the airline said that until “very recently” customer demands for its package holidays had remained “consistently strong” despite the spread of the virus.
It said that booking performance in January and February was well ahead of its 16 per cent increase in summer seat capacity.
The firm first raised its profit outlook back in October after rival package holiday provider Thomas Cook collapsed into administration, leaving Jet2 free to add services to routes where it no longer had a major competitor.
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Despite the boost to profit, the firm did say that momentum had weakened in recent weeks due to the increased pace of the coronavirus’ spread into Europe.
Jet2 said that it was unable to predict how the virus would effect profit in the next financial year.
Shares in the London-listed firm rose over 4.5 per cent today.
Last week aviation body the International Air Transport Association (IATA) said that in total the outbreak could cost the industry up to $113bn over the year.
Carriers around the world have rushed to cancel flights and suspend services after a slump in passenger demand caused by fears of contracting the virus.