Budget travel giant Jet2 upped its profit guidance for the third time in a year, as its boss said customers are cherishing their time away from “our rainy island”.
Profits are set to fall between £510 million and £520 million for the year to 31 March, up from the previous £480m-£520m range. Jet2 said a big reason for the change was that a larger portion of passengers on its flights had booked package deals, which typically means a higher margin for the business, this winter.
Jet2’s initial guidance for the year was for profits between £370 million and £385 million. It upped those targets in April, before a huge upgrade in September after a strong summer.
Looking ahead to the crucial summer period, the Leeds-based firm said bookings were trending ahead of 2023. However, it added that costs were higher, mostly due to higher hotel prices and new EU carbon taxes.
CEO Steve Heapy said: "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.”
Shares were up 3.4% to 1371p in early trading, their highest in almost a year.
The results came as Airbus, which supplies 26 of Jet2’s planes, reported a fall in profits for 2023, despite record orders. Profits were down 11% to €3.8 billion in a year where Airbus delivered 735 aircraft.
