Jet2 is keeping summer prices attractive due to the trend of late bookings as the UK’s largest holiday group reported a 33% jump in annual profit.
Profit before tax for the year to March 31 amounted to €520 million. £390 million versus £390 million. pounds in the previous 12 months, as revenue rose by almost a quarter to £6.2billion.
Passenger transport increased by 9% to 17.72 million, with travellers opting for package holidays with a higher profit margin rising by 15% to 6.08 million.
In comments, Jet2 Group CEO Steve Heapy referred to the airline’s proactive approach that has allowed it to tackle the fires in Rhodes, floods in Skiathos, the technical failure of the Nats air traffic control system along with a record number of air traffic control strikes across Europe and mitigate the impact on customers.
Supporting confidence in the future, the group exercises its remaining rights to purchase Airbus aircraft and now has a delivery stream of 146 fixed orders for A321neo aircraft by 2035.
Seat capacity for this summer is 12.3% higher than last year and stands at 17.16 million seats, while package holiday bookings increased by 7% and represent 7% of the total.
“Passengers are currently booking much closer to departure and therefore pricing for flight and package holidays only products must remain attractive,” Mr Heapy said.
According to him, summer 2024 prices to date show a modest increase, helping to partially offset the cost increases previously announced.
“As always, we remain vigilant with the current macroeconomic and geopolitical environment and how these may affect future spending patterns. However, we continue to believe that package holidays are a durable and popular product, remaining high on our customers’ priority list, even in uncertain economic times,” he added.
The group described business activity since the beginning of the year as in line with expectations.
“Given that there is a late booking profile and that the peak summer months of July, August and September have not yet been completed, and that most of the winter 2024-25 seat capacity has not yet been sold, it is premature, as is always the case at this time of year, to attempt a definitive forecast as to the group’s profitability for the financial year ending March 31, 2025,” he said. Mr Heapy concluded.
