REG - Jet2 PLC - Trading Update

Jet2Announcement

24/04/2024 07:00

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RNS Number : 7576L  Jet2 PLC  24 April 2024

24 April 2024

Jet2 plc

("the Group")

Trading Update

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

Year ended 31 March 2024 (FY24)

Following the trading update in mid-February, the Board now expects to report
a Group profit before foreign exchange revaluation and taxation for the year
ended 31 March 2024 of between £515m and £520m (previously £510m to
£525m), an increase of approximately 33% on the prior year and in line with
current market expectations((1)). Our Balance Sheet position remains very
strong with total cash at 31 March 2024 of £3.2bn and an 'Own Cash' balance
(excluding customer advance deposits) of £1.3bn.

Year ending 31 March 2025 (FY25)

On sale seat capacity for Summer 2024 is currently 12.3% higher than Summer
2023 at 17.1m seats. The season is 55% sold, with average load factors 1.0ppt
ahead of Summer 2023 at the same point. Forward bookings for package holiday
customers are up by 13% and we are also seeing healthy demand from flight-only
passengers for which bookings are currently up by over 18%. Consequently, the
package holiday mix of total departing passengers is 74% and 1ppt below last
year.

Booked to date pricing for Summer 2024 across both our leisure travel products
is showing a modest increase compared to the same period last year which is
helping to mitigate previously announced increases in input costs, although
recently, pricing has been more competitive, particularly for April and May
departures.

Since February, we have taken delivery of a further two new CFM powered
A321neo aircraft from Airbus in line with our agreed delivery schedule, with
both paid for from our own cash reserves. We now have seven in our fleet ahead
of Summer 2024 with another four aircraft from our order planned to arrive
before the end of FY25. Additionally, in late March, flight operations from
our new Liverpool Airport base commenced successfully, with forward bookings
encouraging and customer feedback very positive.

Operationally we are well set for a successful Summer 2024 season with the
required number of aircraft to support our flying programme and sufficient,
fully trained resources to operate our end-to-end product proposition to our
normal high standards of customer care. We are also over 90% hedged for fuel
for the season and over 80% for the full financial year in line with our
well-established hedging policy, providing important cost certainty given
unfolding events in the Middle East.

Furthermore, on 26 March, we were pleased to announce expansion of our UK
footprint at Bournemouth Airport, where flights will commence from 1 April
2025. This will become Jet2's 12th airport base demonstrating confidence in
our Customer First proposition.

In summary, we are pleased with our progress for FY25 to date although as
ever, we remain mindful of the current macro-economic and geo-political
environments and how these may impact future consumer spending. Consequently,
and with over 40% of Summer 2024 and the majority of Winter 2024/2025 seasons
still to sell, it is too early to provide guidance as to Group profitability
for FY25.

Steve Heapy, Chief Executive Officer, commented, "We are pleased with the
strong financial results for FY24 which underlines the resilience, flexibility
and popularity of our product offering, plus the outstanding customer service
provided by our Colleagues. Although still very early in FY25, we remain
confident that as a much trusted holiday provider with an end-to-end customer
care approach underpinned by our principles of 'People, Service, Profits', our
Customers will continue to travel with us from our Rainy Island to the sun
spots of the Mediterranean, the Canary Islands and to European Leisure
Cities."

The Group will announce its Preliminary Results for the year ended 31 March
2024 on 11 July 2024 at which point it will provide 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

(1)  Based on company compiled consensus, 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 £519m.

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.

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 11 bases across the UK - Belfast, Birmingham,
                       Bristol, East Midlands, Edinburgh, Glasgow, Liverpool John Lennon, Leeds
                       Bradford, London Stansted, Manchester and Newcastle. Operations at Bournemouth
                       Airport will commence in April 2025.

 

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