Jet2 summer bookings rise, warns of more competitive pricing

24th Apr 2024 08:09

(Sharecast News) - Package holidays provider Jet2 warned on Wednesday that pricing had become more competitive in recent months but said summer bookings had grown year-on-year.

Jet2 said summer package holiday bookings were up 13% year-on-year, while flight-only bookings had risen 18% compared to the same period twelve months earlier. Pre-tax profits for the year ended 31 March were said to be roughly 33% stronger at £515.0m to £520.0m - the mid-point of the group's previous guidance.

The AIM-listed group stated capacity was now 12.3% higher year-on-year at 17.1m seats, with the summer season already being 55% sold, putting load factors ahead by 1% year-on-year.

Jet2 also said there had been a "modest increase" in pricing, easing cost pressures, and noted that over 80% of fuel requirements had already been purchased, somewhat insulating the firm from ongoing tensions in the Middle East.

"Operationally, we are well set for a successful summer 2024 season with the required number of aircraft to support our flying programme and sufficient, fully trained resources to operate," said Jet2.

However, Jet2 cautioned that pricing had become more competitive ahead of the all-important summer trading period, potentially indicating that pricing power previously enjoyed by the sector was now starting to ease.

As of 1130 BST, Jet2 shares were 5.78% lower at 1,401.97p.

Reporting by Iain Gilbert at Sharecast.com