REG - Jet2 PLC - Launch of Share Buyback Programme of up to £250m

Jet2Announcement

Tue 07:05

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RNS Number : 5895G  Jet2 PLC  29 April 2025

 

29 April 2025

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

Launch of Share Buyback Programme of up to £250 million

Jet2 plc, the Leisure Travel group, announces the commencement of a share
buyback programme in respect of its ordinary shares of 1.25p each ("Ordinary
Shares") up to a maximum aggregate consideration of £250 million from the
date of this announcement (the "Share Buyback Programme") which is expected to
run over the next six to nine months.

The Share Buyback Programme has been launched in consideration of the Group's
sustainable cash generative business model and strong balance sheet, the
Board's continued confidence in the prospects for the business, as well as
providing the opportunity to take advantage of prevailing market conditions to
repurchase shares at favourable levels.

As referenced in the Company's trading update announced separately today, the
Board expects to report Group profit before foreign exchange revaluation and
taxation for the financial year ended 31 March 2025 in line with current
market expectations. During the year, the Group continued to invest in organic
growth, including the launch of two new operating bases and the purchase of
four Airbus A321neo aircraft; undertook on-market share purchases via its
Employee Benefit Trust; repurchased and repaid its convertible bond; and
continued to pay a dividend.

The Group remains committed to its existing capital allocation framework to
create long term shareholder value, which is focused on: maximising returns
from its existing business through organic growth, investing in its colleagues
and maintaining fleet flexibility; preserving a strong balance sheet for
continued capital investment whilst ensuring sufficient 'Own Cash' (excluding
customer advance deposits) to protect against the impact of any unforeseen
events; and shareholder returns, including a regular dividend stream alongside
the return of surplus cash to shareholders as and when appropriate.

Details of the Share Buyback Programme

The Share Buyback Programme is expected to be phased over two tranches, with
the first tranche commencing today up to a maximum aggregate consideration of
£125 million. The first tranche is anticipated to end on 30 September 2025
(subject to the renewal of the requisite authority at the Company's Annual
General Meeting to be held on 4 September 2025) or if earlier, upon the
maximum value of the first tranche of the Share Buyback Programme having been
reached.

Jet2 has entered into an instruction with Canaccord Genuity Limited (the
"Broker") in relation to the first tranche of the Share Buyback Programme.

The Broker will act as "riskless" principal for the purposes of the Share
Buyback Programme, within certain parameters set out in the instruction, and
will make their trading decisions concerning the purchases of Ordinary Shares
independently of the Company.

The sole purpose of the Share Buyback Programme is to reduce the share capital
of the Company. As such, all Ordinary Shares purchased under the Share Buyback
Programme will be cancelled.

The Broker will carry out the instruction through the acquisition of Ordinary
Shares in the Company. Any purchase of Ordinary Shares under the Share Buyback
Programme by the Broker will be carried out on the London Stock Exchange
and/or other trading venues. Any purchases of Ordinary Shares by the Company
will be in accordance with the general authority to purchase Ordinary Shares
granted by its shareholders at the Company's Annual General Meeting on 5
September 2024 (the "2024 Authority", or as subsequently granted to the
Directors at its Annual General Meeting in 2025). The maximum number of
Ordinary Shares which the Company is authorised to purchase under the 2024
Authority is 21,468,385 Ordinary Shares. The Share Buyback Programme will be
conducted in accordance with Article 5(1) of Regulation (EU) 596/2014, as it
forms part of UK domestic law by virtue of the European Union (Withdrawal) Act
2018 (as amended) and the provisions of Commission Delegated Regulation (EU)
2016/1052, as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended) which deal with buyback programmes.

Jet2 intends to announce any purchase of Ordinary Shares under the Share
Buyback Programme on the business day following the calendar day on which the
purchase occurred.

The Company intends to enter into arrangements to commence the second tranche
of the Share Buyback Programme in the sum of up to £125 million in due
course.

The person responsible for making this announcement on behalf of the Company
is Gary Brown.

For further information, please contact:

 Jet2 plc                                               Tel:          0113 239 7692

 Steve Heapy, Chief Executive Officer
 Gary Brown, Group Chief Financial Officer
 Institutional investors and analysts:                  Tel:              0113 848 0242

 Mark Buxton, Finance and Investor Relations Director
 Cavendish Capital Markets Limited - Nominated Adviser  Tel:          020 7220 0500

 Katy Birkin / Camilla Hume / George Lawson
 Canaccord Genuity Limited - Joint Broker               Tel:          020 7523 8000

 Adam James / Harry Rees

 Jefferies International Limited - Joint Broker         Tel:          020 7029 8000

 Ed Matthews / Jee Lee
 Burson Buchanan - Financial PR                         Tel:          020 7466 5000

 Richard Oldworth / Toto Berger

Notes to Editors

Jet2 plc is a Leisure Travel Group, comprising Jet2holidays, the UK's leading
provider of ATOL protected package holidays to leisure destinations across the
Mediterranean, Canary Islands and European Leisure Cities and Jet2.com, the
UK's third largest airline by number of passengers flown, which specialises in
scheduled holiday flights. In the financial year ended 31 March 2024, over 68%
of flown passengers took an end-to-end package holiday with the remainder
taking a flight-only.

Jet2 currently operates from 13 UK airport bases at Belfast International,
Birmingham, Bournemouth, Bristol, East Midlands, Edinburgh, Glasgow, Leeds
Bradford, Liverpool John Lennon, London Stansted, London Luton, Manchester and
Newcastle.

 

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