Jet2 slightly raises its profit before tax guidance as forward bookings perform well

In the statement, Jet2 said: “Against a 20.5 per cent increase in on sale seat capacity, winter 2023/24 forward bookings have performed well with passenger sectors booked currently up by 17 per cent and average pricing for both flight-only and package holiday products robust.

"The mix of higher margin per passenger package holiday customers is slightly ahead of last winter at approximately 60 per cent, which is particularly pleasing given the resurgence of city breaks in this period.”

"With February and March 2024 bookings displaying similar trends to recent months, plus the benefit of an extra day's flying in February and an earlier Easter, we tighten and slightly raise our guidance for group profit before FX revaluation and taxation for the financial year to between £510m and £525m (previously £480m to £520m), which remains dependent on no material extraneous events in the balance of the financial year.”

On sale seat capacity for summer 2024 is currently 12.5 per cent higher than Summer 2023 at 17.2m seats, the statement added.

It continued: “Forward bookings to date are encouraging, with average load factors 1.5ppts ahead of summer 2023 at the same point. Package holiday customers are up by 17 per cent with the package holiday mix of total departing passengers at approximately 77 per cent and in line with summer 2023 at the same point in the booking cycle.

“As always, we have invested well ahead of the summer season to ensure we have sufficient, fully trained resources to operate with our normal high standards of customer care. We have taken delivery of five new CFM powered A321neo aircraft from Airbus in line with our agreed delivery schedule, with a further six aircraft due to arrive before the end of FY25 (full year 2025).

"These aircraft are already demonstrating their strategic value to the group in terms of operating economics, reduced emissions and customer experience.”

The company said its new retail operations centre is now fully operational and customers are seeing benefits from much improved on-board product availability.

It added: “In addition, forward bookings for our new Liverpool John Lennon Airport base where flying operations commence on March 28 2024 have been pleasing, reinforcing our view of the meaningful opportunity across Liverpool, Merseyside and the wider region. This will be our 11th UK base, providing excellent geographic coverage across the UK.”

Steve Heapy, Chief Executive Officer, commented: “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 2024 and will announce its preliminary results for the year ending March 31 2024 on July 11 2024.