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Transport

Jet2 says summer booking are encouraging as FY losses increase

Airline to experience loss in pre-tax profit in light of Covid's varying travel restrictions for the past 12 months

Jet2 PLC (AIM:JET2) expects to report a higher loss than last year but said its on-sale seat capacity for summer 2022 is roughly 14% higher than summer 2019 with "encouraging" bookings.

However, the low-cost airline's summer 2022 load factors are currently 2.5ppts behind summer 2019 at the same point, despite accelerated booking and robust pricing.

In a trading update, Jet2 said adjusted pretax group losses are expected to be between £378mln and £383mln for last year, as new Covid variants led to international travel restrictions. The previous year it made a loss of £373.8mln.

With total cash of £1.5bn of its own cash at the end of March, it said it is "well placed to respond swiftly" as the remaining travel restrictions are relaxed and customer confidence recovers.

The company is currently 95% hedged for jet fuel for summer 2022 and approximately 65% hedged for winter 22/23 in line with its policy.

Separately, the airline exercised six purchase rights from its recently announced new Airbus A321 neo aircraft order. It now has 57 firm orders with the flexibility to extend up to a total of 75 aircraft.

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