- Annual profit guidance confirmed
- Shares up 9% over the past year
- Own cash balance of £1.1 billion
Shares in Jet2 (JET:AIM) gained over 16% to £15.73 in morning trading as the airline and package holiday provider said it expected full year 2025 results to be in line with guidance and announced a £250 million share buyback.
Jet2 expects a group profit before foreign exchange revaluation and taxation for the year ending 31 March 2025 of between £565 million and £570 million, excluding £10 million of profit on disposal of assets primarily from its retired Boeing 757-200 fleet.
The company, which won European Airline of the Year in 2024, said its balance sheet remained strong with total cash of £3.2 billion and an ‘own cash’ balance of £1.1 billion as of 31 March 2025.
HOLIDAY BOOKINGS HIGHER
The company said on sale capacity for summer 2025 was currently 8.3% higher than last year at 18.6 million seats with new bases at Bournemouth and London Luton airports seeing ‘encouraging’ demand and contributing to approximately 4% growth.
‘Pricing remains stable, with our package holiday product displaying a modest average increase and flight‐only a slight increase, helping to mitigate previously announced input cost increases,’ the company added.
Jet2 will announce its preliminary results for the year on 9 July, along with a fuller outlook for the summer 2025 trading period.
GROWING MARKET SHARE
Analysts at Canaccord Genuity were impressed with the update, noting the company had increased its market share due to ‘strong customer trust’ by offering customers ‘flexibility at a predictable all-in cost’.
‘[Jet2] holidays offer scope to deliver a more sustainable EPS (earnings per share) and expand achieved P/E (price-to-earnings) as investors focus on the value of holidays.’
Canaccord added Jet2 also had a ‘customer-first mindset’ and ‘headroom to invest in new markets, for example Morocco and UK bases, to compound growth.’
