Jet2 sees ‘strong booking momentum’ as geopolitical tensions ease

A “strong booking momentum” has been reported by Jet2 following reduced geopolitical tensions in recent weeks.

 

Bookings for this summer are up by 7.1% based on a 7.7% year-on-year increase in capacity to 19.9 million seats, according to the UK’s largest tour operator and third biggest airline.

 

The outlook came as the company disclosed record passenger numbers of 20.83 million in the year to March, up 5% over the previous 12 months.

 

Annual revenue rose by 4% to almost £7.5 billion, although the pre-tax profit slipped by 7% to £551 million.

 

Operating profit of £439.6 million “remained resilient”, after absorbing £11 million of start-up costs for a new base at Gatwick and what was described as £50 million of “industry-wide cost increases” arising from employment taxes and incremental SAF premiums.

 

Travel agent commissions increased by 2% to £187.4 million "reflecting increases in independent travel agent package holiday ticket pricing, in part offset by a 4% reduction in volume through the trade booking channel".

 

Average package holiday pricing in the year rose by 3% to £900 with 1% due to a higher proportion of customers choosing four or five-star hotels “together with the partial recovery of supplier-led cost inflation”.

 

Flight-only ticket yield per passenger sector of £110.92 fell from £118.81 in the previous 12 months “reflected targeted pricing actions”.

 

Looking forward, the company said: “Reduced geopolitical uncertainty has led to strong booking momentum in recent weeks, supported by targeted price investment.

 

“Booked-to-date passengers for summer are up 7.1%, with average load factor for the first four months of the year currently 1.2 percentages points ahead of the prior year.

 

“The group remains confident in the resilience of demand as it continues to invest in load factor, supported by the strength of its proposition, the agility of its operating model and its competitive, value-led pricing.”

 

Jet2 is "actively lobbying" overseas governments and local authorities to minimise the impact of the EU EES (Entry-Exit System) through "tactical suspensions" when the system becomes overwhelmed by high volumes.

 

Chief executive Steve Heapy said: “We have been encouraged by performance for summer 2026 to date, despite the Middle East conflict leading customers to book closer to departure, a trend that is continuing across the peak summer period. 

 

“The combined booked average load factor for the first four months of the year is currently 1.2percentage points ahead of the prior year, reflecting our continued investment in load factor supported by attractive pricing, to take advantage of the strong late booking momentum.

 

“Our London Gatwick operation is performing ahead of our initial expectations, supported by a stronger-than-expected package holiday mix. 

 

“Given this encouraging start, we now expect to operate seven aircraft at Gatwick in summer 2027 as we continue to execute our strategic growth plans in the south of England.”

 

He added: “We have also acted decisively to protect margins, with 90% of full year jet fuel requirement hedged at an average price of $743 and over 85% of foreign exchange also hedged for the full financial year, delivering a high degree of cost certainty.

 

“Today Jet2 is a business with strong fundamentals - we have a clearly differentiated business model, a compelling product proposition, strong customer loyalty and a brand synonymous with trusted, award-winning VIP customer first service.

 

“Looking further ahead, our value drivers are clear: a highly attractive aircraft orderbook which will deliver meaningful cost efficiencies and supports long-term growth; a growing presence in the south of England providing a significant opportunity in an underpenetrated market; a loyal customer base who understand why ‘Nothing Beats a Jet2holiday’; the ability to progressively deepen customer engagement through myJet2, whilst continuing to allocate capital with discipline and purpose.

 

“Underpinned by a robust liquidity position and our ‘people, service, profits’ philosophy, I am confident that we are very well placed to deliver sustainable, long-term profitable growth, as more and more customers place their trust in Jet2 for their hard-earned holidays.”

 

A further update on peak summer trading will be provided at the company’s annual meeting on September 3.