Shares in Jet2 PLC (AIM:JET2) soared 14% in early trading on Tuesday after the leisure airline announced a £250 million share buyback alongside a solid trading update, despite uncertainty across the wider travel sector.
The company said it expected to report a full-year profit of between £565 million and £570 million for the 12 months to 31 March, excluding a £10 million gain from selling retired Boeing 757 200 aircraft.
This would represent a 9% increase on the previous year and was in line with market expectations.
Jet2 ended the financial year with £3.2 billion in total cash, including £1.1 billion in so-called own cash, a figure that excludes customer deposits.
The group also highlighted the early repayment of a £387.4 million convertible bond, which removed a potential dilution risk for shareholders.
The company said demand for summer 2025 was encouraging, with capacity up 8.3% on last year to 18.6 million seats.
Growth has been partly driven by the launch of two new UK operating bases at Bournemouth and London Luton airports.
However, Jet2 noted that customers were continuing to book late, making it harder to predict future trends.
The company said it remained flexible in managing fares and capacity to protect profitability.
Prices for package holidays were slightly higher than last summer, and flight-only fares had edged up, helping to offset rising input costs such as fuel and labour.
Jet2 said it was well prepared for the upcoming peak season, with enough aircraft and trained staff in place.
Fuel, foreign exchange and carbon costs were largely hedged, giving a degree of protection against market swings.
Despite the strong start, the group said it was too early to give profit guidance for the current financial year, citing the uncertain geopolitical and economic backdrop.
The stock was up 189p at 1,539p.