Shares in tour operator Jet2 had a turbulent time on the stock market this morning despite the group announcing \u00a0profits for the year will exceed expectations.<\/p>\n
In a trading update, the Leeds-based group forecast annual profit to rise by eight to 10 per cent to between \u00a3560m and \u00a3570m, and said seats sold for the 2024-25 winter season were 14 per cent up on last year.<\/p>\n
The company confirmed that summer capacity was up 8.5 per cent on last year at 18.6 million seats, with new bases at Bournemouth and Luton airports contributing more than 700,000 seats.<\/p>\n
However, the Leeds-based group warned that future profit margin \u2018may come under pressure\u2019 amid soaring costs and a rising trend in late summer holiday bookings.<\/p>\n
In early trading, Jet2 shares fell more than 9 per cent (145p) to 1420p.<\/p>\n
\u00a0Jet2 said \u00a0it faced \u201cmaterial cost increases\u201d on the back of hikes in National Insurance and the National Living Wage, resulting in a previously announced \u00a325 million hit.<\/p>\n
In addition, the mandated increase to two per cent of Sustainable Aviation Fuel (SAF) in the aircraft fuel mix will result in more than \u00a320m of incremental costs, owing to the significant price differential between SAF and conventional jet fuel.<\/p>\n
The company also warned that delivery delays of new several CFM powered A321neo aircraft will incur additional operations costs to cover aircraft gaps in the peak summer flying programme.<\/p>\n
Steve Heapy, chief executive officer, said, “We are very pleased with how the 2025 financial year is ending and our expected 8 per cent – 10 per cent \u00a0profit growth, and given the limited forward visibility we are satisfied with early bookings for Summer 2025.<\/p>\n
\u201cHowever, we recognise the current macro-economic conditions, and the many demands placed on consumer discretionary incomes, which combined with the later booking profile and cost headwinds detailed, may mean profit margins in the year ahead come under some pressure.<\/p>\n
\u201cNevertheless, our Customer First focus remains unwavering and as a much trusted holiday provider with an end-to-end customer care approach, we remain confident customers will continue to travel with us to the sun spots of the Mediterranean, the Canary Islands and to European Leisure Cities for many years to come.”<\/p>\n
The group will provide a further update in April and will announce its preliminary results for the year ending 31 March 2025 in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"
Leeds-based group has warned that future profit margin “may come under pressure”<\/p>\n","protected":false},"author":271992,"featured_media":2056825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47996],"coauthors":[137100],"class_list":["post-2134962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transport","tag-featured-story","tag-top-story","tag-yorkshire"],"yoast_head":"\n