Jet2 PLC (AIM:JET2) signalled that demand for package holidays remains strong despite economic turmoil as it unveiled a return to profitability in 2023.
“We are cognisant of how quickly the macro-economic environment is evolving and how this may affect consumers' future spending,” the airline said in its full-year results statement.
“However, we continue to believe that the end-to-end package holiday is a resilient and popular product, particularly during difficult economic times.”
Jet2 penned full-year operating profit of £394mln in the year to March 2023, compared to 2022’s £324mln loss, while revenue jumped from £1.2bn to just over £5bn.
The British low-cost carrier also reinstated its dividend, revealing stakeholders would be paid 8p per share after having received nothing last year.
Jet2 reported strong a load factor of 90.5% too, up from 60.2% in 2022, while seat capacity grew 156% from 7.01mln to 17.93mln, reflecting recovering sentiment in the sector.
Analysts have previously tipped that many Brits are still determined to go on holidays abroad despite ongoing cost-of-living pressures, providing a boost for short-haul aviation.
Jet2 finished the year with £2.6bn in cash, a rise of 18%, despite boosting orders to 98 new Airbus A320neo variants during the year.
“Despite a difficult return to normal operations, primarily due to the lack of planning and preparedness of many airports and associated suppliers, our UK leisure travel business […] responded determinedly,” chairman Philip Meeson commented.
Meeson also confirmed he would be retiring as the company’s executive chairman after 40 years on Thursday, following the bumper results.