Jet2 PLC’s report of a slowdown in bookings over recent weeks is not a cause for concern given the airline’s solid pricing and growing package offerings, analysts have said.
Discussing Jet2’s interim results, which were released on Thursday, Liberum noted that “all key volume and revenue metrics” had been favourable.
That includes revenue, which climbed 24% to £4.4 billion, an increase in passenger figures, as well as growth in ticket and holiday package prices by 18% and 11% respectively.
“Winter bookings are tracking slower than this time last year,” Liberum acknowledged,” but average pricing remains robust and the package mix is improving.”
This follows a boom in the short-haul aviation sector in recent months, as passengers looked to travel abroad in droves after the lockdowns of the pandemic.
Analysts see this trend continuing next summer, suggesting the encouraging bookings and pricing seen this time around, coupled with an anticipated 12% increase in capacity for Jet2, should bode well.
Liberum backs the airline as a result, anticipating its shares could climb 34% from Thursday’s closing price to 1,500p.
Highlighting Jet2’s held pre-tax profit guidance of between £480 million and £520 million, Liberum added that the first half would likely carry the company’s full-year results.
“This suggests to us a strong summer balanced by a cautious outlook for winter, with a larger seasonal loss than last year,” the bank said.