Jet2 expects profit of up to £385m as bookings rise

Leeds-based Jet2 said on Thursday it now expects its results for the year ending March 31, 2023, to exceed current average market expectations of £317 million.

In a trading update, Jet2 said it expects to report a group profit before foreign exchange revaluation and taxation of between £370 million and £385 million.

“Pleasingly, winter 2022/23 forward bookings have continued to strengthen throughout December 2022 and January 2023,” said the firm.

“Consequently, average load factors are now slightly ahead of winter 2018/19 at the same point (against a 24% increase in seat capacity) with pricing and margins significantly higher.

“In addition, the mix of package holiday customers has remained consistent at approximately 60% of total departing passengers for the season, 16ppts higher than Winter 2018/19.”

On the year ending March 31, 2024, Jet2 said: “On sale seat capacity for summer 2023 is currently 6.6% higher than summer 2022 at 15.2m seats.

“Forward bookings to date are encouraging, with the mix of package holiday customers representing approximately 77% of the total departing passengers and 1ppt higher than summer 2022.

“In addition, average load factors for summer 2023 are currently 1.0ppt ahead of summer 2022 at the same point, with pricing strong and margins encouraging as customers’ eagerness to take their much valued and anticipated holidays remains high.

“Although the group faces input cost pressures including fuel, carbon, a strengthened US dollar and wage increases, plus investment to ensure our colleagues can thrive and have a balanced lifestyle, which may mean margins come under some pressure, we remain confident that with our customer focused approach and Right Product for these Tougher Times, our customers will continue to be keen to travel with us from our Rainy Island to the sun spots of the Mediterranean, the Canary Islands and to European Leisure Cities.

“The group will provide a pre-close trading update in mid-April 2023 and will announce its Preliminary Results for the year ending 31 March 2023 on 6 July 2023, which will include a fuller outlook for the all-important summer 2023 trading period.”