Home Money Jet2 profits take off as Britons escape ‘our Rainy Island’

Jet2 profits take off as Britons escape ‘our Rainy Island’

by Elijah
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In charge: Jet2 CEO Steve Heapy
  • Jet2 said more customers are opting for holiday packages this winter

Jet2 has raised its annual profit forecast for the third time in a year, as the travel group’s boss celebrated Brits’ winter escape from “our rainy island”.

The group was boosted during the winter months by excellent demand for package holiday deals, which often provide travel companies with wider profit margins.

Jet2 raised its forecast for annual group profits before currency revaluation and taxes to between £510 million and £525 million, up from £480 million and £520 million.

Jet2 Stock It jumped 4.52 per cent or 60.00 pence to 1,386.00 pence on Thursday, having risen more than 7 per cent in the last year.

In charge: Jet2 CEO Steve Heapy

The flights and holidays group said “hard-earned” holidays remained a “priority” for its customers. However, it noted increases in the input costs of hotel accommodation.

Jet2 said advance bookings for winter 2023/24 had “performed well”, rising 17 per cent, while average price remained “solid”.

Seat sales capacity for the warmer months is currently 12.5 percent higher than last year, at 17.2 million, the group added.

Package travel customers increased 17 percent over the year, representing 77 percent of departing passengers and in line with last summer.

The group said advance bookings for its new Liverpool John Lennon Airport base, where flight operations will begin on March 28, 2024, have been “satisfactory and reinforce our view of the significant opportunity in Liverpool, Merseyside and the region in general”.

Jet2 chief executive Steve Heapy said: “We are pleased with how the 2024 financial year is ending and are encouraged by early bookings for summer 2024.

‘While we recognize that there are many demands on consumers’ discretionary income, we believe that our Customers appreciate the time they spend away from our Rainy Island and want to be properly cared for during their vacation.

“As a highly trusted and customer-focused holiday provider, we remain confident that you will continue to travel with us to the sunny spots of the Mediterranean, the Canary Islands and European leisure cities.”

The group will provide a further update in April and announce its preliminary results for the year ending 31 March 2024 on 11 July 2024, which will include a fuller outlook for the important summer 2024 trading period.

In November, Jet2 revealed that average prices for its holiday packages rose 11 per cent to £855 in the six months to the end of September.

The group saw net ticket performance from its flight-only customers rise 18 per cent to just over £124 during the period, while non-ticket revenue per passenger reached £25.81, slightly higher than last year’s £25.79.

Jet2 enjoyed a 24 per cent rise in revenue to £4.41 billion for the six months to September 30, while operating profit rose 19 per cent to £617 million.

Towards the end of last year, Jet2 increased its interim dividend to shareholders to 4 pence per share, up from 3 pence per share the previous year.

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