Jet2 upgrades profits outlook as bookings soar ahead of pre-pandemic levels
The airline now expects to beat market expectations and report pre-tax profits of between £370 million and £385 million.
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Your support makes all the difference.Airline Jet2 has increased its profits outlook after revealing that bookings for next winter are ahead of where they were before the pandemic.
The business now expects to beat market forecasts and report pre-tax profits of between £370 million and £385 million – significantly ahead of what experts had predicted.
According to the company, analysts on average thought that pre-tax profits would hit around £317 million.
Winter 2022/23 forward bookings have continued to strengthen throughout December and January
The profit figures are calculated after foreign exchange is taken into account.
Jet2 said that average load factors – how full planes are – is slightly higher for next winter than last, even though it now has 24% more seats.
The airline also said that prices and margins have been “significantly higher” on the tickets it has sold.
“Winter 2022/23 forward bookings have continued to strengthen throughout December and January,” it said.
“Consequently, average load factors are now slightly ahead of Winter 2018/19 at the same point.”
It added: “Given these positive indicators, the board now expects to exceed current average market expectations.”
Shares rose around 3% on Thursday following the news.
People are still prizing their week in the sun above almost anything else it seems
AJ Bell investment director Russ Mould said: “People are still prizing their week in the sun above almost anything else it seems, with airline and package holidays firm Jet2 becoming the latest name in the sector to unveil upgrades.
“The failure of the shares to really take off on what is a really encouraging update reflected a very strong run for the company in recent months, as industry data and its peer group have offered their own encouraging take on demand for holidays.
“Where Jet2 deserves credit is in the way it has treated customers over the last 12 months – not cutting flights at the last minute, doing its best to look after travellers, and taking on board extra costs itself.”