Jet2 sees FY underlying earnings at lower end of range
By Michele Maatouk
Date: Thursday 04 Sep 2025
(Sharecast News) - Jet2 tumbled on Thursday as it said full-year underlying earnings were set to be towards the lower end of the consensus range and reduced its winter capacity.
In a statement ahead of its annual general meeting, the company said that since its last update on 9 July, the "closer to departure" booking trend has become more pronounced.
To the end of August, flown package holiday customers grew by 2%, with flight-only passengers rising by 17%. Jet2 said average package holiday pricing continues to display a modest increase, while net ticket yields for its flight-only product have become increasingly attractive.
For Winter 25/26, the group has chosen to exercise capacity discipline "in a less certain consumer environment", cutting seats on sale from 5.8m to 5.6m. This is still an increase of 9% on Winter 24/25.
Jet2 said that with "limited visibility given the later booking profile and the remainder of summer and much of winter seat capacity still to sell", it expects EBIT for the year to the end of March 2026 to be towards the lower end of the consensus range of £449m to £496.
However, it also said it remains premature to provide definitive guidance as to overall group profitability for the year.
Chief executive Steve Heapy said: "Although we are currently operating in a difficult market, we have a proven business model, a loyal customer base, a flexible approach to capacity management and of course our multi award-winning customer service.
"We believe that these factors provide the foundation for a solid financial result this year and for further profitable growth in the years to come."
At 0935 BST, the shares were down 13.6% at 1,394p.
Russ Mould, investment director at AJ Bell, said: "Millions of people prioritise experiences over material goods, with foreign holidays high up the list of things they scrimp and save for. Such a trend should be positive for airlines and holiday companies, yet countless individuals are leaving it to the last minute to make a booking.
"Jet2 has once again bemoaned this situation, leaving it with cloudy rather than crystal clear earnings visibility. Management cannot keep their fingers crossed that sales will eventually come through; they need certainty given the expense in running a fleet of aircraft and a complex accommodation chain.
"Guidance that full-year earnings will be at the lower end of market forecasts has wiped out Jet2's share price gains so far this year. It's a disappointing setback for the business and has dragged down shares in other airlines including easyJet and Wizz Air.
"Jet2 has a few levers it can pull in response. Seat capacity has been trimmed for the winter season, albeit still higher than last year. It is also making prices more attractive for holidaymakers to help shift the remaining holidays or plane seats still available. That could curb profit progression but help to keep the business ticking over."
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