Jet2 gets summer-ready with new planes and profit before tax up a third
Package holiday favourite Jet2 has said its profit before tax will be up by a third on last year, as its summer bookings are ahead – but winter remains uncertain.
The getaway favourite told markets this morning that its board now expected profit before foreign exchange and taxation for the year ending 31 March to be between £515m and £520, a more precise figure than the £510m-£525m given previously.
This is 33 per cent up on the previous year and in line with expectations, while Jet2 added that its balance sheet was “very strong” with total cash sitting at £3.2bn.
As the summer rapidly approaches, it said sale seat capacity was 12.3 per cent up on summer 2023 as 17.1m were booked out for a getaway.
It added that the season is more than 50 per cent sold out with load factor, the percentage of available capacity on a plane, ahead of last summer also.
Jet2 added that forward booking for package holidays is up by 13 per cent and there was also “healthy demand” for flight-only passengers, up 18 per cent.
The London-listed company said pricing for the summer was showing a “modest increase”, and this was helping to “mitigate previously announced increases in input costs”.
It also reported that it’s taken delivery of two new aircraft from Airbus, with both paid for; meaning its fleet consists of seven planes for the summer, and another four from its order due to arrive before the end of the financial year.
Jet2 said it’s set for a “successful” summer and was over “90 per cent hedged for fuel for the season and over 80 per cent for the full financial year” which gives “important cost certainty given unfolding events in the Middle East”.
It warned about the “macro-economic and geo-political environments and how these may impact future consumer spending. Consequently, and with over 40 per cent of Summer 2024 and the majority of Winter 2024/2025 seasons still to sell, it is too early to provide guidance as to Group profitability for FY25”.
Steve Heapy, Chief Executive Officer said the results “underlines the resilience, flexibility and popularity of our product offering, plus the outstanding customer service provided”.
The CEO added: “Although still very early in FY25, we remain confident that as a much trusted holiday provider with an end-to-end customer care approach underpinned by our principle.. our customers will continue to travel with us from our rainy island to the sunspots of the Mediterranean, the Canary Islands and to European leisure cities.”