REG - Jet2 PLC - Trading Update

Jet2Announcement

15/02/2024 07:00

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RNS Number : 1872D  Jet2 PLC  15 February 2024

15 February 2024

Jet2 plc

("the Group")

Trading Update

Jet2 plc, the Leisure Travel group, announces the following update on trading.

Year ending 31 March 2024 (FY24)

Against a 20.5% increase in on sale seat capacity, Winter 2023/24 forward
bookings have performed well with passenger sectors booked currently up by 17%
and average pricing for both flight-only and package holiday products robust.
The mix of higher margin per passenger package holiday customers is slightly
ahead of last Winter at approximately 60%, which is particularly pleasing
given the resurgence of City Breaks in this period. With February and March
2024 bookings displaying similar trends to recent months, plus the benefit of
an extra day's flying in February and an earlier Easter, we tighten and
slightly raise our guidance for Group profit before FX revaluation and
taxation for the financial year to between £510m and £525m (previously
£480m to £520m), which remains dependent on no material extraneous events in
the balance of the financial year.

Year ending 31 March 2025 (FY25)

On sale seat capacity for Summer 2024 is currently 12.5% higher than Summer
2023 at 17.2m seats. Forward bookings to date are encouraging, with average
load factors 1.5ppts ahead of Summer 2023 at the same point. Package holiday
customers are up by 17% with the package holiday mix of total departing
passengers at approximately 77% and in line with Summer 2023 at the same point
in the booking cycle.

As always, we have invested well ahead of the summer season to ensure we have
sufficient, fully trained resources to operate with our normal high standards
of customer care. We have taken delivery of five new CFM powered A321neo
aircraft from Airbus in line with our agreed delivery schedule, with a further
six aircraft due to arrive before the end of FY25. These aircraft are already
demonstrating their strategic value to the Group in terms of operating
economics, reduced emissions and customer experience. Our new Retail
Operations Centre is now fully operational and our Customers are seeing
tangible benefits from much improved on-board product availability. In
addition, forward bookings for our new Liverpool John Lennon Airport base
where flying operations commence on 28 March 2024 have been pleasing,
reinforcing our view of the meaningful opportunity across Liverpool,
Merseyside and the wider region. This will be our 11(th) UK base, providing
excellent geographic coverage across the UK.

Booking momentum is positive with hard-earned holidays remaining a priority
for our Customers, although as previously announced the Group continues to see
increases in input costs including from hotel accommodation and changes to the
EU Carbon Emissions Trading Scheme, as well as planned investment to enhance
our technology systems and in our much valued colleagues in line with our
'People, Service, Profits' principles. Whilst pricing for Summer 2024 across
both our leisure travel products is currently showing an increase compared to
the same period last year, we remain mindful of the current macro-economic and
geo-political environments and how these could impact future consumer
spending.

Steve Heapy, Chief Executive Officer, commented, "We are pleased with how the
2024 financial year is ending and are encouraged by early bookings for Summer
2024. Whilst recognising that there are many demands on consumer discretionary
incomes, we believe that our Customers cherish their time away from our Rainy
Island and want to be properly looked after throughout their holiday
experience. As a customer focused and much trusted holiday provider, we remain
confident they will continue to travel with us to the sun spots of the
Mediterranean, the Canary Islands and to European Leisure Cities."

The Group will provide a further update in April 2024 and will announce
its Preliminary Results for the year ending 31 March 2024 on 11 July 2024,
which will include a fuller outlook for the all-important Summer 2024 trading
period.

For further information, please contact:

 Jet2 plc                                   Tel:              0113 239 7692

 Steve Heapy, Chief Executive Officer
 Gary Brown, Group Chief Financial Officer
 Cavendish Capital Markets Limited          Tel:              020 7220 0500

 Nominated Adviser

 Katy Birkin

 Camilla Hume

 George Lawson
 Canaccord Genuity Limited                  Tel:              020 7523 8000

 Joint Broker

 Adam James

 Jefferies International Limited            Tel:              020 7029 8000

 Joint Broker

 Ed Matthews
 Buchanan                                   Tel:              020 7466 5000

 Financial PR

 Richard Oldworth

 Toto Berger

 

Notes to Editors

 ·                     Jet2holidays is the UK's largest package holidays provider and Jet2.com is the
                       UK's third largest airline by number of passengers flown.
 ·                     Jet2 currently operates from 10 bases across the UK - Belfast, Birmingham,
                       Bristol, East Midlands, Edinburgh, Glasgow, Leeds Bradford, London Stansted,
                       Manchester and Newcastle. Operations at Liverpool John Lennon Airport will
                       commence in March 2024.

 

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