Jet2 PLC (AIM:JET2) reported first-half results that showed smaller sales and profits growth than expected, but unveiled a new £100 million share buyback to sugar-coat the news for investors.
The shares flew 4.3% higher to 1,357p, down over 30% from highs in the summer.
Revenue of £5.34 billion was generated in the six months to 30 September 2025, up 5% compared to a year ago, as the company flew 14.09 million passengers, up from 13.34 million and 40% higher than in 2019.
Package holiday pricing was resilient, up 3%, but flight-only yields were down 7%, with discounts offered to fill seats.
Operating profit rose 2% to £715.2 million, reported profit before tax edged up 1% to £800.3 million, and basic earnings per share increased 8% to 300.4p following a £250 million buyback already completed in 2025.
As well as the new buyback, an interim dividend of 4.5p per share was also declared, up from 4.4p.
For the full-year outlook, capacity growth had been trimmed to 7.7% from the previous 9%, with winter average pricing trends similar to the past summer, with management seeing operating profit in line with the current consensus forecast, which is for around £453 million.
CEO Steve Heapy confirmed that the later-booking trend from customers is continuing, "but it is clear they still want their well-earned holidays in the sun with a brand they can trust".
He added: "Our proven business model continues to deliver and this gives us confidence in our future growth prospects."
Jet2 recently announced a new Gatwick airport base, expanding options as it pointed to encouraging performance at its previous new additions of Bournemouth and Luton airports.
Analysts at Peel Hunt said the results "show lower revenues and operating profit than we had assumed, but higher PBT due to better net interest income than we had forecast".
The dividend was also below estimates as the group continues to invest for growth.
Panmure Liberum also felt the results were "marginally light of our estimates", by 4% at the operating level and by 2% at the PBT level.