- Sale seat capacity 15.26 million
- Shares up 17% year-to-date
- Market share will grow says analysts
Shares in Jet2 (JET2:AIM) were up more than 7% to £11.04 as the low-cost airline posted a positive trading update ahead of its annual general meeting.
Jet2 shares are up 17% year-to-date as investors continue to be pleased with the company’s post-pandemic strategy.
Analysts at Canaccord Genuity believe Jet2 has the ‘right product for tougher times.’
‘We believe Jet2’s key differentiators are variable-duration stays to suit each customer’s budget; all-in holiday cost certainty in a ‘one-click’ purchase for customers wanting known costs; and stand-out service with a competitively paid, attentive front line,’ they add.
Another profit boost for Jet2 as consumers head to the beach to forget cost-of-living crisis
The company said July and August ‘experienced strong late booking momentum’, with September currently showing a similar trend.
At 15.26 million, sale seat capacity remains ‘largely consistent’ with the level reported in the company’s preliminary results on 6 July and is 7.3% higher than Summer 2022
GREEK WILDFIRES
It was difficult for the low-cost airline to ignore the Greek island wildfire disasters in Corfu, Crete and Rhodes this summer.
Jet2 incurred a combined loss of £13 million from the Rhodes wildfires and the recent UK NATS (National Air Traffic Services) system failure over the August Bank Holiday.
The company’s Greek woes aren't over, as sister operator Jet2holidays announced it had cancelled all flights and holidays due to depart for Skiathos up to and including September 12 due to flash floods.
Jet2 said its cancellations were caused by ‘extraordinary circumstances’ and were made ‘with our mutual customers’ best interests in mind.
Despite these setbacks, the company said it was now on track to exceed current market forecasts for group profit before foreign exchange revaluations and taxation for the year ending 31 March 2024, with the outcome expected to be in the range of £480 million to £520 million.
NEW CHAIRMAN NAMED
Jet2 said former Tesco (TSCO) and John Lewis man Robin Terrell will be taking over as chairman from founder and executive chairman Philip Meeson, who announced he was stepping down from the board in July to assume a non-executive chair role.
Meeson is one of Jet2’s largest shareholders with an 18.3% stake in the business, so investors will be keen to see whether he maintains that stake.
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