Jet2 PLC (AIM:JET2) shares descended over 9% on Wednesday as the airline flagged growing cost pressures.
Profit before currency movements and tax is expected to sit between £560 million and £570 million in the year to March 31, marking an increase of 8% to 10%.
Pricing for the most recent winter period had remained competitive, the airline said, though its average booked load factor was down 2.2 percentage points.
A string of cost pressures were also highlighted, including due to delayed delivery of new A321neo aircraft ahead of the peak summer period.
Higher expenses linked to hotel accommodation, aircraft maintenance and general airport charges were also flagged, alongside looming national insurance and wage increases.
A mandated increase in the use of sustainable aviation fuel to make up 2% of loads was set to add £20 million to costs too, Jet2 said.
“We are very pleased with how the 2025 financial year is ending,” chief executive Steve Heapy commented.
“We continue to believe that our customers cherish their time away from our rainy island.
“However, we also recognise the current macro-economic conditions and the many demands placed on consumer discretionary incomes, which combined with the later booking profile and cost headwinds detailed, may mean profit margins in the year ahead come under some pressure.”
Shares dropped 9.4% to 1,418p.