The package holiday market leader on Wednesday (19 February) said it expected to make a pre-tax profit of £560 million to £570 million in the year to 31 March 2025, an increase of 8-10%.
However, looking ahead to the next financial year, chief executive Steve Heapy warned the wider economy and demands on discretionary incomes – combined with the later booking profile and cost headwinds – “may mean profit margins in the year ahead come under some pressure”.
The statement was badly received by investors, with Jet2’s share price down more than 10% immediately afterwards.
Jet2 said current winter capacity, at 5.1 million seats, was 14% higher than last winter, “with the closer to departure, later booking profile experienced during summer 2024 having continued”.
It said average flight load factors had fallen 2.2 percentage points, while pricing had “remained competitive”.
Summer 2025 capacity is 8.5% higher at 18.6 million seats. New bases at Bournemouth and Luton have added more than 700,000 seats – nearly half of the operator’s capacity increase. Both are expected to be “modestly loss-making” in their first year.
Jet2 said: “Bookings for our two new bases are encouraging, although the average load factor at London Luton is materially lower than that of existing bases due to it only going on sale when operations were announced in November 2024.”
It added: “To date we are continuing to see a later booking profile. For the combined departure months of April, May and June, total forward bookings are up by approximately 7% with overall average load factor for our existing bases broadly flat.
“For the same departure months, package holiday customers have increased by 4%, while flight-only passengers have grown by 19%. Pricing remains keen with our package holiday product displaying a modest average increase and flight‐only slightly positive.”
Jet2 has awarded staff a 3% pay rise from April, broadly in line with current inflation. It added inflationary pressures had put up accommodation and airline costs. However, these were mitigated by currency and fuel hedging. Jet2 is 85% hedged in foreign exchange and jet fuel for summer 2025.
It warned late delivery of 14 new Airbus A321s this summer would mean additional costs as gaps in schedules were covered. A further £25 million hit would come from increases to National Insurance and the National Living Wage, it said, while the 2% sustainable aviation fuel mandate would add more than £20 million.
Heapy added: "We are very pleased with how the 2025 financial year is ending and our expected 8-10% profit growth and given the limited forward visibility we are satisfied with early bookings for summer 2025.”
A further update will be provided in April 2025 with full-year results for the 2024/25 year revealed on 9 July.
