Jet2 back in black despite ‘difficult return to normal operations’

Summer 2022 seat capacity increased by 14% compared with summer 2019, operated at an average load factor of 90.7%. This included an increase in higher margin package holiday customers as a percentage of total departing passengers, up from just over 50% in summer 2019 to just shy of two-thirds this summer.

Speaking at the Jet2holidays conference earlier this month, Jet2.com and Jet2holidays chief executive Steve Heapy hailed the company’s decision to start reserving flights at preferential times exclusively for package customers, ensuring these operated at – or close to – load factors of 100%.

Flight-only ticket yield per passenger, meanwhile, came in at £105 in the six months to 30 September, up from £73.27 a year ago, with Jet2 highlighting how strong customer demand for the eastern Mediterranean had driven down the need to discount.

The group’s total cash balance, including deposits, stood at £2.83 billion as of 30 September, up from just over £2 billion at the same point in 2021. Excluding customer deposits, Jet2’s own cash position as of 30 September was £1.99 billion, up from £1.52 billion a year earlier.

Meeson’s buoyant outlook was further underpinned by "encouraging" bookings for winter 2022/23, particularly with the "important post-Christmas booking period still to come". Jet2 said this had placed it "on track" to exceed current average market expectations for group profit for the full year to 31 March 2023.

The airline and operator, though, identified several headwinds it said could impact margins, including fuel and carbon cost pressures, with Heapy revealing at the Jet2 conference the cost of carbon permits had increased from around £5-£10 a ton in 2018 to around £90 a ton come this June.

Other pressures include the pound’s weakness against the dollar, plus investment in wage increases and staffing, which Jet2 said would underpin its operational resilience by ensuring colleagues "can thrive and have a balanced lifestyle".

However, Jet2 said it was steadfast in its belief it has the "right product for tougher times", highlighting its variable duration holidays and wide-ranging product portfolio with options for all budgets. "We remain confident out customers’ eagerness to take their much valued and anticipated holidays will remain high."