Home Estate Planning Jet2 hikes profit guidance after customers splash out on package holidays

Jet2 hikes profit guidance after customers splash out on package holidays

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Jet2 has hiked its annual profit forecast amid “robust” pricing and soaring demand for its package holidays and flights.

The airline and tour operator is anticipating group profit before foreign exchange revaluation and taxation of between £510m and £525m, up from prior guidance of £480m and £520m.

It comes despite fears of a slowdown in demand at airlines and travel companies. Travel boomed last year as consumers nourished a pent-up desire for holidays following years of Covid-era lockdowns, but it is unclear how long the rebound will last.

Disruption stemming from conflicts in the Middle East and Ukraine has also threatened to disrupt bookings.

Jet2 said it had seen winter 2023/24 forward bookings had “performed well” and were currently up by 17 per cent, while average pricing remained robust.

Sale seat capacity for the warmer months is currently 12.5 per cent higher than last year at 17.2m. Package holiday customers are also up 17 per cent, making up 77 per cent of departing passengers and in line with last summer.

Steve Heapy, Chief Executive Officer, 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.”

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