Jet2 PLC (AIM:JET2), the low-cost leisure airline, pleased the market as it reported higher interim revenues and profits and said it was on course to deliver above-forecast full-year profits.
Shares rose 4% as the company said: “We are presently on track to exceed current average market expectations for group profit before FX revaluation and taxation for the year.”
First-half revenues jumped 730% to £3,567.6mln while group profit before foreign exchange revaluation and taxation increased to £505.0mln from a loss of £195.1mln last time and rose 44% above pre-Covid performance.
Seat capacity increased 14% against Summer 2019 and buoyant customer demand resulted in the business achieving an average load factor of 90.7% (2019: 93.1%).
Higher margin Package Holiday customers rose to 65.9% of total passengers, up 13.1 percentage points against Summer 2019 (2019: 52.8%), while flight-only ticket yield per passenger rose 43% to £105.00 from the prior period.
The disruptions seen mid-summer to the industry resulted in delay and compensation costs in excess of £50.0mln.
Winter 2022/23 bookings are encouraging and pricing remaining robust, the company said, although it cautioned the post-Christmas booking period is still to come.
Looking ahead, the group said it faces input cost pressures including fuel, carbon, a strengthened US dollar and wage increases which mean margins may come under some pressure.
But “we remain confident that our customers' eagerness to take their much valued and anticipated holidays will remain high”, the company concluded.