Jet2 Delivers Another Year of Healthy Profit Growth
Why we think this is very good
The trading update from Jet2 plc indicates strong performance, with profit growth of around 9% for the year ended 31 March 2025, in line with market expectations. The company has a robust balance sheet, with substantial cash reserves and has managed its debt effectively. While the outlook for the next financial year remains uncertain, the company's flexible business model and focus on customer service suggest it is well-positioned to navigate the dynamic market conditions.
Key Points
- Group profit before FX revaluation and taxation expected to be £565m-£570m, up 9% year-on-year
- Total cash of £3.2bn and 'Own Cash' of £1.1bn at 31 March 2025
- Repaid higher cost debt obligations with lower cost, longer-term funding
- Flexible business model and focus on customer service to navigate market conditions
Summary
Jet2 plc has reported a Group profit before foreign exchange revaluation and taxation for the year ended 31 March 2025 of between £565m and £570m, representing a 9% increase on the prior year and in line with current market expectations. The company has a strong balance sheet with total cash of £3.2bn and 'Own Cash' of £1.1bn, and has repaid higher cost debt obligations with lower cost, longer-term funding. The company is well-positioned to navigate the dynamic market conditions with its flexible business model and focus on customer service.