REG - Jet2 PLC - Annual General Meeting Statement

Jet2Announcement

07/09/2023 07:00

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RNS Number : 6250L  Jet2 PLC  07 September 2023

 

7 September 2023

Jet2 plc ("the Company" or "the Group")

Annual General Meeting Statement

Summer 2023 on sale seat capacity at 15.26m seats, has remained largely
consistent with that reported at our Preliminary Results on 6 July of 15.29m
seats and is 7.3% higher than Summer 2022, the small reduction in capacity
primarily a result of the recent Rhodes wildfires.

The months of July and August experienced strong late booking momentum with
September currently showing a similar trend and average load factors now
0.5ppts behind Summer 2022 at the same point (at 6 July 2023: 0.8ppts behind).
Pleasingly, the mix of higher margin Package Holiday customers represents
71.7% of total departing passengers at present and is 4.8ppts higher than
Summer 2022.

Winter 2023/24 forward bookings are encouraging with average load factors
0.3ppts ahead of those of Winter 2022/23 at the same point, against a 20.4%
seat capacity increase to 4.47m seats, with the package holiday mix currently
up by over 5ppts on Winter 2022/23. For both seasons, average pricing to date
for both package holidays and flight-only products has remained robust.

Although there is still some way to go in the Leisure Travel winter booking
cycle, based on current visibility and having absorbed approximately £13m of
cost and lost margin from the Rhodes wildfires and the recent NATS air traffic
control failure, we are on track to exceed current market expectations for
Group profit before foreign exchange revaluations and taxation for the year
ending 31 March 2024((1)), with the outcome presently expected to be in the
range of £480m to £520m. This guidance remains dependent on avoiding any
material extraneous events in the balance of the year.

Our Customer First proposition continues to be underpinned by a motivated team
of Jet2 Colleagues whose purpose is to deliver outstanding service. This was
fully demonstrated both during, and after, the significant disruption caused
by the Rhodes and NATS incidents as our UK operational and head office support
teams, combined with our overseas teams at destination airports and in resort,
once again proved a real differentiator. As always, the Board would like to
thank all our Colleagues for their unstinting efforts during the year so far.

Looking forward, we continue to believe that Package Holidays are the Right
Product for Price Conscious Customers and our ability to offer a wide choice
of quality product, together with truly variable duration holidays, enables
them to conveniently tailor their holiday plans to suit their individual
budgets. Consequently, Summer 2024 is already on sale with growth in seat
capacity of approximately 11% and average load factors at this very early
stage are slightly ahead of Summer 2023 at the same point.

For the long term our strategy remains consistent - To be the UK's Leading and
Best Leisure Travel Business with 'People, Service, Profits' serving as our
guiding principles.

The Board will provide a further trading update on the publication of its
interim results on 23 November 2023.

 

 

 

For further information please contact:

 Jet2 plc                                    0113 239 7692

 Steve Heapy, Chief Executive Officer

 Gary Brown, Group Chief Financial Officer
 Cenkos Securities plc                       020 7397 8900

 Nominated Adviser

 Katy Birkin

 Camilla Hume
 Canaccord Genuity                           020 7523 8000

 Joint Broker

 Adam James
 Jefferies International Limited             020 7029 8000

 Joint Broker

 Ed Matthews

 Becky Lane
 Buchanan                                    020 7466 5000

 Financial PR

 Richard Oldworth

 Toto Berger

 

(1)  Based on Bloomberg consensus information, the Board believes the current
average market expectations for Group profit before FX revaluation and
taxation for the year ending 31 March 2024 to be £466.5m.

 

Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.

 

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