Jet2 on track to beat full-year profit expectations

(Sharecast News) - Shares in Jet2 took off on Thursday, after the tour operator said it was on course to beat full-year profit expectations. Updating on trading at its annual general meeting, the airline said there had been "strong late booking momentum" in July and August, with September also showing a similar trend.

Winter 2023/24 bookings, meanwhile were "encouraging", with average load factors 0.3 percentage points ahead of winter 2022/23.

The AIM-listed firm said it had been hit by around £13m of cost and lost margin following the Rhodes wildfires earlier in the summer and the more recent NATS air traffic control failure.

But while it acknowledged there was still "some way to go" in the winter booking cycle, Jet2 said it was on course to beat full-year profit expectations. It now expects pre-tax profits before forex revaluations to come in between £480m and £520m.

As at 1030 BST, shares in Jet2 where ahead 7% at 1,102.14p.

Looking to the next year, Jet2 also noted that summer 2024 was already on sale with growth in seat capacity of around 11%.

Russ Mould, investment director at AJ Bell, said: "Holidays have become a lot more expensive over the past year, so there has been some nervousness that companies like Jet2 would find it harder going. So far, those fears look overblown.

"Jet2 is pushing hard on its package holidays being the solution for price conscious travellers and the message seems to be resonating with this target market."