Cautious optimism for Jet2 despite cost pressures

Leisure travel group, Jet2, now expects to report profits before foreign exchange revaluation and taxation of between £387m and £392m for the year ended 31 March 2023.

The Leeds-headquartered group adds its total cash at 31 March 2023 was £2.62bn with an ‘Own Cash’ balance, excluding customer advance deposits, of £1.12bn.

For the year ending 31 March 2024, the group says its on sale seat capacity for summer 2023 is currently 7.2% higher than summer 2022 at 15.26m seats. It adds that forward bookings so far also remain robust.

In its latest trading update, Jet2 notes: “Although the group is facing input cost pressures including fuel, carbon taxes, a strengthened US dollar and wage increases, pricing for both our package holiday and flight-only products remains strong and margins per booked passenger are encouraging.

“We have increased our operational resilience by taking control of handling operations at a further two of our UK bases – Bristol and Newcastle – meaning we now self-handle at seven of our ten UK bases and are therefore not reliant on third parties for these aspects of our operations.

“We are pleased with the current position. But with the new financial year having only recently commenced, the continued threat of summer European air traffic control disruption, and over 40% of the summer 23 season plus the majority of winter 23/24 still to sell, it is too early to provide definitive guidance as to group profitability for the financial year.”

Jet2 will release its Preliminary Results for the year ended 31 March 2023 on 6 July 2023.

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