Jet2 upgrades full-year profit expectations

In an update for the year to the end of March 2023, the company said winter 2022/23 forward bookings continued to strengthen throughout December and January. As a result, average load factors are now slightly ahead of winter 2018/19 at the same point, with pricing and margins significantly higher.

In addition, the mix of package holiday customers has remained consistent, at around 60% of total departing passengers for the season, 16 percentage points higher than winter 2018/19.

Jet2 said that "given these positive indicators", it now expects to exceed current average market expectations of £317m and report a group profit before foreign exchange revaluation and taxation of £370m to £385 for the year ending 31 March 2023.

The company said seat capacity for summer 2023 is currently 6.6% higher than a year earlier, at 15.2m seats, while forward bookings to date are "encouraging". In addition, average load factors for summer 2023 are ahead one percentage point versus the same point a year earlier, "with pricing strong and margins encouraging".

Jet2 did highlight some negatives, however, noting that it continues to face input cost pressures including fuel, carbon, a strengthened US dollar and wage increases, which may mean margins come under some pressure.