Jet2 PLC (AIM:JET2) should post a robust trading update tomorrow according to Deutsche Bank, with the market backdrop favourable since an update in September and spending data from Barclaycard and Similarweb supportive.
Deutsche Bank is forecasting first-half profit growth of 4% from the travel group with other announcements are helpful, including the growth in ATOL for next year, the planned launch of its 13th base in Luton and the use of its strong balance sheet to part-repurchase its convertible bond.
Trading on 8.3 times full-year earnings, 'buy 'is Deutsche Bank's recommendation.
UBS predicts Jet2's first-half revenue will rise by 13% to £4,999 million with underlying profit [EBIT] of £649 million and net profit of £528 million.
“We expect that load factors will run higher for winter outlook with both pricing and volume growth.”
Cost control will likely be a focus given the recent UK budget, adds the bank.