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

Jet2 has upped annual profit guidance for the third time in a year, as the travel group’s boss cheered Britons’ winter escape from ‘our Rainy Island’. 

The group was boosted over the winter months by bumper demand for package holiday deals, which often provide travel businesses with wider profit margins. 

Jet2 raised its guidance for annual group profit before foreign exchange revaluation and tax to between £510million and £525million, up from £480million to £520million.

Jet2 shares jumped 4.52 per cent or 60.00p to 1,386.00p on Thursday, having risen over 7 per cent in the last year. 

In charge: Jet2’s chief executive, Steve Heapy

The flight and holiday group said ‘hard-earned’ holidays remained a ‘priority’ for its customers. However, it noted increases in input costs from hotel accommodation. 

Jet2 said winter 2023/24 forward bookings had ‘performed well’, rising 17 per cent, while average pricing remained ‘robust’.

Sale seat capacity for the warmer months is currently 12.5 per cent higher than last year at 17.2million, the group added. 

Package holiday customers rose 17 per cent during the year, comprising 77 per cent of departing passengers and in line with last summer.

The group said forward bookings for its new Liverpool John Lennon Airport base where flying operations start on 28 March 2024 have been ‘pleasing, reinforcing our view of the meaningful opportunity across Liverpool, Merseyside and the wider region’.

Jet2’s 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.

‘Whilst recognising that there are many demands on consumer discretionary incomes, we believe that our Customers cherish their time away from our Rainy Island and want to be properly looked after throughout their holiday experience. 

‘As a customer focused and much trusted holiday provider, we remain confident they will continue to travel with us to the sun 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 a fuller outlook for the all-important Summer 2024 trading period.

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

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

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

Towards the end of last year, Jet2 upped its interim dividend for shareholders to 4p per share, up from 3p a share the previous year.  

This post first appeared on Dailymail.co.uk