Jet2 PLC (AIM:JET2) shares dropped in Thursday's trade after it told investors it now expects earnings (EBIT) for the year ending March 2026 will be towards the lower end of the market consensus range, of £449 million to £496 million.
The budget airline and package holiday operator, in a statement ahead of its annual general meeting, said it has reduced winter 2025/26 capacity to 5.6 million seats from previous plans for 5.8 million.
It noted, meanwhile, that its summer 2025 capacity of 18.5 million seats was 8% higher than last year. Package holiday customers grew by 2% and flight-only passengers rose 17% to the end of August.
Average package holiday prices showed modest growth while flight-only yields improved due to targeted marketing spend, Jet2 added.
"Although we are currently operating in a difficult market, we have a proven business model, a loyal customer base, a flexible approach to capacity management and of course our multi award-winning customer service," chief executive Steve Heapy said.
"We believe that these factors provide the foundation for a solid financial result this year and for further profitable growth in the years to come."
In London, Jet2 shares were down 224p, around 14%, changing hands at 1,390p.