Jet2 has upgraded its annual profit forecast for the year to March 31 to as much as £385 million on the back of a surge in bookings and higher prices.
The UK’s second largest tour operating group described forward bookings for the summer as “encouraging” with capacity up by 6.6% to 15.2 million seats over last year.
Winter 2022-23 forward bookings continued to strengthen throughout December and January.
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“Consequently, average load factors are now slightly ahead of Winter 2018-19 at the same point – against a 24% increase in seat capacity – with pricing and margins significantly higher,” Jet2 said in a trading update.
The mix of package holiday customers has remained consistent at about 60% of the total for the season, 16 percentage points higher than winter 2018-19.
“Given these positive indicators, the board now expects to exceed current average market expectations and report a group profit before foreign exchange revaluation and taxation for the year ending 31 March 2023 of between £370 million and £385 million,” Jet2 added.
The mix of package holiday customers represents about 77% of the total booked for this summer and one percentage point higher than summer 2022.
Average load factors for summer 2023 are currently one percentage point ahead of last year at the same point, “with pricing strong and margins encouraging as customers’ eagerness to take their much valued and anticipated holidays remains high”.
Jet2 added: “Although the group faces input cost pressures including fuel, carbon, a strengthened US dollar and wage increases, plus investment to ensure our colleagues can thrive and have a balanced lifestyle, which may mean margins come under some pressure, we remain confident that with our customer focused approach and right product for these tougher times, our customers will continue to be keen to travel with us from our rainy island to the sun spots of the Mediterranean, the Canary Islands and to European leisure cities.”
A pre-close trading update is due in mid-April followed by results for the 12 months to March on July 6. This will include a fuller outlook for the “all-important” summer 2023 trading period.
The positive update followed EasyJet reporting that its in-house tour operation was 60% sold for summer, outstripping previous projections.
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