The market-leading operator said strong demand for packages and flight-only “helped to cover the many inflationary increases in our cost base” during the 12 months to 31 March 2024.

The average price of a Jet2holidays package increased by 11% during this period from £750 to £830, while Jet2.com flight-only net ticket yield per passenger sector increased by 14% to £114.23.

In its preliminary 2023/24 financials, issued on Thursday (11 July), Jet2 spelled out how operating expenses had increased by 26% to £5.8 billion, with a rise of 15% in operating cost per flown passenger to £329.

Jet2 said increased energy costs, IT projects and the indirect impact of having more staff following the pandemic amounted to a 44% increase in expenditure, while marketing and brand investment was up by 26%.

The combined effects of the August 2023 Nats air traffic control failure, Rhodes wildfires and flooding in Skiathos cost £14 million. “Consequently, operating profit per flown passenger was flat at £24,” Jet2 said.

Despite a hedging policy, fuel and carbon costs combined increased by 34% to £803.7 million. Jet2 said the rise “was materially above the growth in flying activity”, with the average cost of fuel up by 24% and carbon allowances 19% higher year-on-year.

“In addition, from 1 January 2024, the EU Emissions Trading Scheme exemption for return flights from the Canary Islands to the UK was removed, which added a further 1% to the overall cost,” it said.

Landing, navigation and third-party ground handling fees increased by 18% to £474.9 million, “outstripping flying activity growth”.

Jet2 paid agents £166.9 million in commission, which compares with £142m the previous year (+17.5%). It said this had “largely moved in line with the increased volume of package holiday customers and the increase in average package holiday price”.

"Sales through travel agents remains an important distribution channel for the business," Jet2 insisted. "Our package holidays can be booked through all major independent travel agent chains, homeworker companies and independent agents."

Other direct costs increased by 15% to £218.7 million “in particular on fuel for the provision of in-resort transfers to and from hotels”. 

Jet2 saw the proportion of customers choosing higher margin package holidays increase by 3.4 percentage points to 68.3%. Flight-only passenger numbers were “relatively steady” at 5.61 million.

Seat capacity during the 12-month period increased by 10% to 19.73 million, with average load factors dipping from 90.5% to 89.8%, but “with growth in average pricing for both our leisure travel products robust”.

Looking ahead, Symi and the Athens coast have been added for summer 2024 programme, plus Porto as a city break. For winter 2024/25, Marrakech and Agadir become year-round, and Gdansk is a new Christmas market destination. Pula on Croatia’s Istrian Coast is new for summer 2025, plus Spain’s Costa de la Luz.

Jet2 said there had been “a marked increase” in package customers booking via its app, up by 21 percentage points since 2020 to 24%. The relaunched MyJet2 service now has more than four million members.