Jet2 hikes dividend on record passenger numbers
Jet2 shares tumbled on Wednesday despite record passenger traffic as investors fretted over global geopolitical uncertainty.
Shares fell more than 5 per cent by midday evven after the leisure travel group hiked its annual dividend and reported a surge in profit on soaring demand.
Investors are set for a final dividend of 12.1p per share for the 12 months ended 31 March, up 13 per cent year-on-year, while basic earnings per share jumped 15 per cent to 213.1p.
Pre-tax profit also rose 12 per cent to £593.2m as strong demand drove revenue up 15 per cent to £7.2bn.
Jet2 flew a record 19.8m passengers over the period, up 12 per cent year-on-year as flight-only passengers increased 18 per cent to 6.6m.
“These results reaffirm the enduring appeal, resilience and differentiation of our product offering founded on end-to-end customer care, all of which help to create cherished holiday memories for our customers,” Steve Heapy, Jet2 chief executive, said.
He added that the airline and package holiday firm was well on track to fulfilling its long-term strategy of being the UK’s top leisure travel business.
Jet2 says passengers are booking last minute
The company said bookings for the busy summer period continue to be made “closer to departure”, but that demand remained strong, with sale seat capacity eight per cent higher year-on-year.
It added trading had fallen in line with market expectations, although “evolving geo-political and economic” developments have limited visibility.
Shares in Jet2 have risen by more than 40 per cent over the last 12 months as the company continues to capitalise on booming European travel demand in the post-Covid era.
In the UK, it has launched new bases at Bournemouth and London Luton, a move it says means 85 per cent of the country is within a 90-minute drive of its various hubs.
Jet2 announced a £250m share buyback programme in April, which is currently 35 per cent complete.