Jet2 PLC expects to deliver profit ahead of market expectations, after reporting a boost in revenue and pretax profit in its half-year results on Thursday.
The Leeds, England-based airline and package holiday operator said revenue for the period ended September 30 increased 15% to £5.09 billion from £4.41 billion a year before. Pretax profit jumped 20% to £791.4 million from £660.5 million.
Excluding foreign exchange revaluation, pretax profit was 16% higher at £772.4 million from £664.6 million. Basic earnings per share increased 21% to 279.3 pence each from 231.00p in 2023.
‘With a material amount of the winter 2024/25 season still to sell, we are currently on track to deliver group profit before FX revaluation and taxation for the year ending 31 March 2025 ahead of market expectations,’ Jet2 said.
It cited company-compiled consensus of £541 million, which would represent a rise from £520.1 million the year prior.
Jet2 shares were up 7.0% at 1,517.00p each on Thursday afternoon in London.
Jet2 said total cash and money market deposits increased 12% to £3.60 billion from £3.21 billion the year prior. The company’s own cash, excluding customer deposits, increased 9.3% to £2.32 billion from £2.12 billion the year prior, which Jet2 said would boost capital expenditure in new aircraft over the coming years.
On sale seat capacity to date stands at 5.1 million seats, which is 14% higher than the equivalent period in 2023/24. Average pricing to date for Jet2’s package holiday grew modestly to £904.00 per passenger, up 6% on the 2023 price tag of £855.00.
Flight-only ticket yield declined by 0.7% to £130.81 per passenger, down from £131.71 the year prior. Still, Jet2 noted a trend of more passengers booking closer to their departure date which ‘more than offset this slight price decrease’.
‘As is typical’, losses are expected for the second half of the 2025 financial year, given that this period will cover the European winter. Jet2 said it will continue to invest in more aircraft ‘to support seat capacity growth of approximately 9% for summer 2025’, alongside attracting new staff in preparation for further expansion. The company will commence operations from new bases at Bournemouth and London Luton airports in February and April 2025 respectively.
Jet2 also noted planned expenditure on sustainable aviation fuel in line with the UK and EU governments’ mandates of a minimum 2% blend in the jet fuel supply effective January 1.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
