Jet2 has adjusted its profit expectations for the year upwards, demonstrating optimism driven by strong early bookings.
With a notable increase in passenger numbers and pricing, the company continues to monitor how consumer spending might be affected by broader economic conditions.
The UK’s largest tour operator, Jet2, anticipates a group profit for the financial year ending in March to be between £510 million and £525 million. This is a rise from the previous guidance of £480 million to £520 million, bolstered by heightened bookings and pricing.
Jet2 has observed a commendable performance in winter 2023-24 forward bookings, with a 20.5% increase in capacity. Passenger levels have risen by 17%, while average pricing for both flight-only and package holidays remains robust.
Summer 2024 capacity is anticipated to be 12.5% higher than last year, offering 17.2 million seats. Jet2 reports that forward bookings show positive trends, with average load factors 1.5 percentage points ahead of last summer at this point in the cycle.
The mix of total departing passengers stands at around 77%, consistent with summer 2023 at the same stage, while package holiday customers have increased by 17%.
While Jet2 reports an increase in pricing for summer 2024 leisure travel products compared to last year, they remain mindful of the macro-economic and geo-political environments.
The company recognises the potential impact of these factors on future consumer spending and continues to see cost pressures from hotel accommodation, the EU Carbon Emissions Trading Scheme, and planned technological investments.
Bookings for Jet2’s new UK base at Liverpool John Lennon airport are described as encouraging, supporting the company’s strategic growth across the Liverpool and Merseyside region.
Five new Airbus A321neos have been added to the fleet, with six more to follow, promising improvements in operating economics, emissions, and customer experience.
Ahead of the summer season, Jet2 has invested significantly in training and resources to uphold high customer service standards.
The company has also made advances with its retail operations centre, enhancing on-board product availability for passengers.
Jet2’s anticipation of a strong finish to the 2024 financial year is bolstered by early summer bookings.
Despite challenges, the company remains confident that its offerings to sun-drenched destinations in the Mediterranean, Canary Islands, and European leisure cities will continue to attract customers.
Chief executive Steve Heapy expressed satisfaction with the company’s progress towards the end of the 2024 financial year.
Heapy remains optimistic that customers will prioritise their holiday experiences, despite competing demands on discretionary income.
Jet2’s profit guidance adjustment reflects robust early bookings and a strategic approach to growth.
The company remains vigilant about economic challenges while focusing on providing exceptional holiday experiences for its customers.
