Jet2 sees FY underlying earnings at lower end of range

(Sharecast News) - Jet2 reduced its winter capacity on Thursday as it said full-year underlying earnings were set to be towards the lower end of the consensus range. In a statement ahead of its annual general meeting, the company said that since its last update on 9 July, the "closer to departure" booking trend has become more pronounced.

To the end of August, flown package holiday customers grew by 2%, with flight-only passengers rising by 17%. Jet2 said average package holiday pricing continues to display a modest increase, while net ticket yields for its flight-only product have become increasingly attractive.

For Winter 25/26, the group has chosen to exercise capacity discipline "in a less certain consumer environment", cutting seats on sale from 5.8m to 5.6m. This is still an increase of 9% on Winter 24/25.

Jet2 said that with "limited visibility given the later booking profile and the remainder of summer and much of winter seat capacity still to sell", it expects EBIT for the year to the end of March 2026 to be towards the lower end of the consensus range of £449m to £496.

However, it also said it remains premature to provide definitive guidance as to overall group profitability for the year.

Chief executive Steve Heapy said: "Although we are currently operating in a difficult market, we have a proven business model, a loyal customer base, a flexible approach to capacity management and of course our multi award-winning customer service.

"We believe that these factors provide the foundation for a solid financial result this year and for further profitable growth in the years to come."