Jet2 Sees Profit Growth Despite Cost Headwinds
Why we think this is neutral
The trading update from Jet2 plc shows a mixed picture. On the positive side, the company expects to report 8-10% profit growth for the year ending March 2025, driven by capacity and booking increases. However, the update also highlights several cost headwinds, including inflationary pressures, aircraft delivery delays, and regulatory changes, which 'may mean profit margins in the year ahead come under some pressure'. While the profit growth is encouraging, the numerous cost challenges temper the overall sentiment.
Key Points
- Expected 8-10% increase in Group profit before foreign exchange revaluation and taxation for year ending 31 March 2025
- 14% higher on-sale capacity for Winter 2024/25 and 7% higher forward bookings for Summer 2025
- Facing cost headwinds from inflation, aircraft delivery delays, and regulatory changes
- Profit margins may come under pressure in the year ahead
Summary
Jet2 plc has provided a trading update for the year ending 31 March 2025, highlighting an expected 8-10% increase in Group profit before foreign exchange revaluation and taxation compared to the prior year. The company has seen 14% higher on-sale capacity for Winter 2024/25 and 7% higher forward bookings for Summer 2025. However, the update also notes several cost headwinds, including inflationary pressures, aircraft delivery delays, and incremental costs from regulatory changes, which 'may mean profit margins in the year ahead come under some pressure'. The company remains confident in its 'Customer First' focus and ability to provide a differentiated holiday experience.