Jet2 'mindful' of £25 million Budget blow despite record results

Accommodation and fuels costs also increased during the half, as did travel agent commissions, which increased by 9% to £133.9 million – up from £123.3 million. 

Total H1 operating expenses also went up year-on-year from £3.8 billion in 2023 to £4.4 billion this year. 

Overall group operating profit increased by 14% to £701.5m, with operating profit per flown passenger 2% higher at £53. Group revenue soared 15% to just shy of £5.1 billion.

In July, Jet2 sounded a warning about “many inflationary increases” to its cost base during its 2023/24 full-year to the end of March.

Higher energy costs, IT project and the indirect impact of having more staff following the pandemic were blamed for the expenditure increases. 

Jet2 chief executive Steve Heapy remains bullish, though. “Even in difficult economic times, the annual overseas holiday remains a highly valued and eagerly anticipated experience, often taking precedence over other discretionary spend. 

“As a result, we are confident that our proven business model offers customers a compelling value proposition.” 

Demand for Jet2.com’s flight-only product proved “strong” as passengers increased by 18% to 4.11 million, while package holiday pricing remained “resilient” with the average price of a Jet2holidays package up by 6% to £904.

However, flight-only ticket yield per passenger softened by 1% to £130.81 from £131.71 in 2023.

Jet2, though, stressed that absolute gains from strong late demand “more than offset this slight price decrease.

“Given our seat capacity growth, the later passenger booking profile, the mix of passengers and total margin, we are very pleased with this outcome,” it added. 

“Investment continues in infrastructure and technology to improve our customer first product proposition and support our growth ambitions.”