UK leisure carrier Jet2 is embarking on a £250 million ($335 million) share buyback, which will be conducted in two stages of up to £125 million each.
Jet2 will be able to purchase a maximum of just under 21.47 million shares, 10% of its issued stock.
It states that the sole purpose of the buyback is to reduce the share capital of the company – all shares purchased under the scheme will be cancelled.
Jet2 expects the first tranche, beginning on 29 April, to end on 30 September. The overall process will run for six to nine months.
It says the board has initiated the buyback after considering its confidence in the company’s prospects and its cash-generative business model, as well as its strong balance sheet.
The company adds that it provides an opportunity to “take advantage of prevailing market conditions” to repurchase the shares at “favourable levels”.
Buyback will result in a “positive enhancement” to its earnings-per-share, it says, adding that the company “remains committed” to its current capital-allocation framework to create long-term shareholder value.
Jet2 disclosed the plan as it predicted a group pre-tax profit of £565-570 million for the year to 31 March 2025, up by some 9% on the previous year’s figure.
This excludes £10 million of profit from asset disposal including its Boeing 757-200s.
Jet2 has set summer capacity this year at 18.6 million seats, around 8.3% higher than in 2024, with contributions from new bases at London Luton and Bournemouth.
“We are continuing to see a late booking profile which limits forward visibility,” the company states, but pricing remains stable.
“Bookings for our two new bases remain encouraging,” it adds.
Jet2, which invested in four Airbus A321neos over the year, says it has the required number of aircraft to support its summer season programme.
It had remarked in February that it expected to increase its A321neo fleet to 23 by the end of this summer, but would incur additional operating costs to cover gaps in the summer schedule resulting from late deliveries.
Chief executive Steve Heapy says the company has generated “another year of healthy profit growth”, adding that it “underlines the resilience, flexibility and popularity of our product offering”.
He says the carrier is “satisfied” with progress for summer this year.
“With a steadfast focus on long-term growth together with our flexible business model, we are well-positioned to navigate the dynamic market conditions,” he states. The company has yet to issue guidance on profitability for 2025-26.
