Jet2 PLC (AIM:JET2) saw its shares drop as much as 14% after the leisure travel group reported wider losses for the year to end March and warned that its performance in the current year was dependent on how quickly the aviation sector returned to stability.
“Although we invested well ahead of the Summer 22 season to ensure we had adequate resources to be able to operate efficiently, we have been directly impacted by the broader disruption seen across the aviation sector and its supply chains,” the company said.
“Many suppliers have been woefully ill-prepared and poorly resourced for the volume of customers they could reasonably expect, inexcusable, bearing in mind our flights have been on sale for many months and our load factors are quite normal.
“Consequently, group performance for the financial year ending 31 March 2023 very much depends on how quickly the broader aviation sector returns to some level of stability, as well as strength of bookings for the remainder of Summer and the second half of the financial year, a period for which we still have limited visibility.”
Pre-tax losses widened to £388.8mln from £341.3mln the previous year. Revenue jumped 212% to £1.23bn as Covid restrictions were lifted, but operating expenses more than doubled to £1.56bn.
“In the medium term, inflationary pressures coupled with the uncertain UK economic outlook for consumers, lead us to conclude that prices are likely to come under some pressure,” it said.
The shares fell as low at 767.40 pence in early trading before recovering to trade 8.6% lower at 813.60 pence by mid-morning.