Jet2 bullish about summer 24 despite 'competitive' April and May pricing
Gary NoakesJet2.com and Jet2holidays has said it is happy with the way sales for summer 2024 are progressing despite a big increase in capacity.
In a trading statement, the group said it was 55% sold for summer 2024 with capacity up 12.3% at 17.1 million seats. In a similar statement earlier this month, EasyJet holidays said it was 70% sold for this summer, albeit with a much smaller programme.
Jet2 said its average load factors were a percentage point ahead of summer 2023 at the same point.
“Forward bookings for package holiday customers are up by 13% and we are also seeing healthy demand from flight-only passengers for which bookings are currently up by over 18%," said Jet2. "Consequently, the package holiday mix of total departing passengers is 74% and one percentage point below last year.”
It added summer 2024 pricing “is showing a modest increase compared to the same period last year” which was offsetting higher costs. However, it added: “Recently, pricing has been more competitive, particularly for April and May departures."
The announcement worried investors, with the share price falling nearly 6%.
Jet2 plc has trimmed its profit forecast for 2023/24, but still expects an increase of around a third on the previous year.
The group now expects pre-tax profits for the year to 31 March 2024 of between £515 million and £520 million, compared with a previous estimate of £510 million to £525 million. Jet2 said this was an increase of approximately 33% on the prior year “and in line with current market expectations”.
Looking ahead, Jet2 said it was pleased with progress in the current financial year but was mindful of current macro-economic and geo-political environments and how these may impact future consumer spending.
“Consequently, and with more than 40% of summer 2024 and the majority of winter 2024/25 season still to sell, it is too early to provide guidance as to group profitability for the full year 2025.”
Jet2 said it had cash reserves, excluding customer deposits, of £1.3 billion. It will reveal its full-year results on 11 July.
Gary Noakes
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