Jet2 shares soar on £250m buyback and higher summer bookings
Shares in Jet2 soared more than 15 per cent on Tuesday as the leisure travel firm reported healthy profit growth and unveiled a £250m share buyback programme.
Group profit before foreign exchange revaluation and taxation is expected to come in at between £565m and £570m, an increase of around nine per cent year-on-year.
Jet2 said summer bookings are already 8.3 per cent higher than last year at 18.6m seats, with a big contribution from its new bases at Bournemouth and London Luton Airport.
A planned £250m share buyback programme will further boost earnings per share through the year, the company added.
“We are very pleased with how the 2025 financial year has ended with another year of healthy profit growth, which underlines the resilience, flexibility and popularity of our product offering, plus the consistently outstanding customer service provided by our colleagues,” chief executive Steve Heapy said in a statement to markets.
“Although still very early in FY26, we are satisfied with progress for Summer 2025 so far. With a steadfast focus on long-term growth together with our flexible business model, we are well-positioned to navigate the dynamic market conditions and continue delivering exceptional service-led holiday experiences to our customers.
He added: “We remain confident… our customers will continue to travel with us from our rainy island to the sun spots of the Mediterranean, the Canary Islands and to European Leisure Cities.”
Jet2 warned it remained “mindful” of the impact of the current geo-political and macro-economic environments, which include the ongoing threat of Donald Trump’s liberation day tariffs.
“With a considerable way to go in the leisure travel booking cycle and given the limited forward visibility, it is too early to provide guidance as to Group profitability for FY26,” the company said.
Russ Mould, investment director at AJ Bell, said: “Jet2 is a classic example of a business that has made significant strategic progress in recent years, yet whose share price has struggled to fly higher. Even after today’s spike, the shares are still trading at the same level as four years ago.”
“Airlines are highly cyclical businesses and Jet2 has come on leaps and bounds in diversifying its income through the provision of packaged holidays. The brand is held in high esteem and the company is in a financially strong position.”
He added: “Given the uncertain economic backdrop, Jet2’s trading update could have been a lot worse. At least it remains upbeat and has reiterated full-year guidance, which has to be taken as a win in the current market environment.