Leisure travel company Jet2 has raised its profit expectations to between £387m and £392m this morning, for the year ending 31 March 2023.
The company has reported sale seat capacity for Summer 2023 as 7.2 per cent higher than the previous year, at 15.26 million.
Forward bookings remain encouraging, with package holiday customers representing just over 75% of total departing passengers and 5ppts higher than Summer 2022. Average load factors for Summer 2023 are currently 0.7ppts ahead of Summer 2022.
Jet2 said that “fuel, carbon taxes, a strengthened US dollar and wage increases,” have failed to stifle demand, with “customers eager to take their much valued holidays.”
“Just as we did last year, we invested well ahead of the summer season to ensure we have adequate, fully trained resources to operate with our normal high standards of customer care.”
The group cautioned that “it is still too early to provide a full prediction for its profitability in 2023 [as] 40 per cent of the summer 2023 season is still left to sell, as well as the majority of winter 23/24 and the threat of European summer air traffic control disruption remains.”
Analysts from the Investment Bank Stifel described Jet2 as their ‘top pick’ in the travel sector.
“We think this market share momentum corroborates our view that Jet2 should be seen as a structural winner, based on having a ‘Goldilocks’ business model and a strong balance sheet to drive further gains in years to come, whatever the path of the economy.”
Jet2 will announce its preliminary results for the year ended 31 March 2023 on 6 July 2023, shares in Jet2 were trading down 0.23 per cent at 1,321p.