Shares of Leeds-based Jet2 plc rose as much as 16% after it announced a “healthy” year end trading update and a £250 million share buy back.
“Following the trading update in mid-February, the Board expects to report a Group profit before foreign exchange revaluation and taxation for the year ended 31 March 2025 of between £565m and £570m which excludes £10m of profit on disposal of assets primarily from our retired Boeing 757-200 aircraft fleet,” said Jet2.
“This represents another year of healthy profit growth, up approximately 9% on the prior year and is in line with current market expectations.
“Notwithstanding the early repayment of the £387.4m convertible bond during the year, our Balance Sheet position remains strong, with total cash at 31 March 2025 of £3.2bn and an ‘Own Cash’ balance (excluding customer advance deposits) of £1.1bn.”
Based on company compiled consensus, Jet2 believes the current average market expectations for group profit before FX revaluation and taxation for the year ended March 31, 2025, to be £566 million, excluding profit on asset disposals.
On the year ending March 31, 2026 (FY26), Jet2 said: “On sale capacity for Summer 2025 is currently 8.3% higher than Summer 2024 at 18.6m seats, with our new bases at Bournemouth and London Luton airports contributing approximately 4% of this growth.
“To date we are continuing to see a late booking profile which limits forward visibility. However, our unique, flexible and fully integrated business model provides the Group with the ability to balance average load factor, pricing and product mix, in order to maximise overall profitability.
“Given the later bookings, currently our flight-only mix of passengers is a little higher than the prior year. Pricing remains stable, with our package holiday product displaying a modest average increase and flight‐only a slight increase, helping to mitigate previously announced input cost increases. Bookings for our two new bases remain encouraging.
“Operationally we are well set for a successful Summer 2025 season with the required number of aircraft to support our flying programme and sufficient, fully trained colleagues to operate our end-to-end product proposition to our normal high standards of customer care.
“We are also over 95% hedged for fuel and foreign exchange for the season and over 80% for the full financial year and 100% hedged for carbon emissions, providing important cost certainty.
“In summary, we are satisfied with our progress for FY26 to date although as ever, we remain mindful of the potential impact of the current geo-political and macro-economic environments. 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.”
On capital allocation, the Leeds firm said: “In consideration of the Group’s sustainable cash generative business model and strong balance sheet, and reflecting the continued confidence in the prospects for the business, the Board intends to launch an on-market share buyback programme of up to £250m.
“The Company expects to cancel those shares upon buyback, providing a positive enhancement to EPS. Looking ahead, the Group will continue to monitor its trading performance and cash generation and allocate capital in line with its established framework as appropriate.”
Jet2 CEO Steve Heapy said: “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.
“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.
“We remain confident that as a much trusted holiday provider with an end-to-end customer care approachunderpinned by our principles of ‘People, Service, Profits’, 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.”