Jet2 profits rise as Brits flee ‘our rainy island’

Jet2 has raised annual profit forecasts for the third time in a year after the travel group’s boss welcomed Britain’s winter flight from ‘our rainy island’.

The group received a boost during the winter months due to huge demand for package holiday deals, which often provide travel companies with higher profit margins.

Jet2 raised its expectations for annual group profit before foreign currency revaluation and tax to £510m to £525m, up from £480m to £520m.

Jet2 shares rose 4.52 percent or 60.00p to 1,386.00p on Thursday, after rising more than 7 percent in the past year.

The flight and holiday group said “hard-earned” holidays remained a “priority” for its customers. However, an increase in input costs of hotel accommodation was noted.

Jet2 said bookings for winter 2023/2024 “performed well”, up 17 percent, while average prices remained “robust”.

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

The number of package holiday customers increased by 17 percent over the year, comprising 77 percent of departing passengers and in line with last summer.

The group said advance bookings for the new Liverpool John Lennon Airport base, where flying operations will commence on March 28, 2024, have been “pleasant and have reinforced our view of the meaningful opportunities in Liverpool, Merseyside and the wider region”.

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

‘While we recognize the many demands placed on consumers’ discretionary income, we believe our customers cherish their time away from our rainy island and want to be well looked after during their holiday experience.

‘As a customer-focused and highly trusted holiday provider, we remain confident that they will continue to travel with us to the sunny spots of the Mediterranean, the Canary Islands and to 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 fuller guidance for the all-important summer 2024 trading period.

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

The group saw net ticket revenue from flight-only customers increase by 18 percent over the period to just over £124, while non-ticket revenue per passenger was £25.81, up slightly from £25. 79 last year.

Jet2 saw a 24 per cent rise in turnover to £4.41 billion in 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 for shareholders to 4p per share, up from 3p per share the year before.