Package holidays take off for Jet2 as consumers keen to escape ‘rainy island’

The holiday group told investors it was expecting its profit for the year to be higher than previously thought.

Jet2holidays has overtaken Tui to become the UK’s largest tour operator for the first time (Cum Okolo/Alamy Stock Photo/PA)

Travel group Jet2 has revealed demand for package holidays has taken off, as people prioritise “time away from our rainy island” despite continuing to face cost-of-living pressures.

The business, which sells low-cost flights and holiday deals, told investors it was expecting its profit for the year to be higher than previously thought.

Winter bookings have been 17% higher than the previous year as the company said it had increased seat capacity across flights.

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

Steve Heapy, Jet2's chief executive

It also reported a 17% increase in people buying package holidays for the upcoming summer, compared with the same time last year.

The deals, which include flights and accommodation, as well as baggage and transfers, typically make more money for travel companies per booking.

Jet2 said prices for its summer holidays this year are currently higher than the previous year.

It comes as costs have risen for the business, including for hotel accommodation and as a result of EU climate policy.

But the company said that bookings were strong with “hard-earned holidays remaining a priority” for its customers, even though it is mindful of the fact that tougher economic conditions could impact the level consumer spending.

Rival holiday group Tui has also previously stressed that people are willing to prioritise spending on travel and experiences.

Steve Heapy, Jet2’s chief executive, 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.”

He added that the “sun spots” of the Mediterranean, the Canary Islands, and European cities remain popular with holiday-goers.

Jet2 said it had slightly raised its expectations for pre-tax profit for the year to the end of March, from between £480 million and £520 million, to between £510 million and £525 million. It is set to report results in July.