UK leisure carrier Jet2 is forecasting full-year pre-tax profit of £480-520 million ($600-650 million), before foreign exchange revaluation, as the company states that it is on track to exceed market expectations.
Jet2 says the outlook is based on “current visibility” although it acknowledges that the winter booking cycle still has “some way to go”.
It has absorbed around £13 million in costs and lost margins from the recent wildfires in Greece, as well as the disruption from the UK air traffic control failure in late August.
Jet2 turned in a pre-tax profit of £391 million – before hedge ineffectiveness and exchange revaluation – in the full year to 31 March 2023.
The airline says its summer seat capacity has been “largely consistent” with figures disclosed in early July, with a slight reduction due to the Greek fires.
Jet2 reveals that it recorded “strong late booking momentum” in July and August, and the trend for September is “similar”.
It adds that higher-margin package holiday customers represent nearly 72% of departing passengers – a greater proportion than last year.
Jet2 says the winter forward bookings are “encouraging”, with average load factors slightly ahead of those for the previous winter despite a 20% hike in seat capacity.