- Shares in Jet2 have risen sharply in the last year
Higher demand for package holidays boosted Jet2 this summer, as ‘resilient’ pricing helped to offset ‘softer’ flight-only net ticket yields.
The group said its package holiday pricing ‘continued to show a modest increase on last year’, with customer numbers up by 8 year-on year.
And, while ticket-only yields were softer, flight-only passenger numbers jumped 17 per cent.
On the up: Shares in London-listed Jet2 have risen sharply in the past year
The group said on-sale seat capacity was 12.4 per cent higher than last summer, at 17.17million, a ‘slight increase’ on the level reported at its preliminary results.
Jet2 said July and August experienced ‘strong’ late booking momentum, with September showing a similar trend.
As a result, average load factor stood 1.2 per cent behind summer 2023 at the same point.
Booked-to-date package holiday customers were up by 8 per cent, representing 70.2 per cent of total departing passengers, with flight-only passengers rising by 17 per cent.
Jet2 said: ‘Looking forward, we continue to believe that package holidays are the right product for price conscious customers.
‘Our ability to offer a wide choice of quality product and the flexibility of truly variable duration holidays, makes it easy for our Customers to conveniently tailor their holiday plans to suit their individual budgets.’
Jet2 operates from 11 UK airport bases at Belfast International, Birmingham, Bristol, East Midlands, Edinburgh, Glasgow, Leeds Bradford, Liverpool John Lennon, Manchester, Newcastle and London Stansted. A further base at Bournemouth airport is launching in February 2025.
Jet2 shares rose 0.62 per cent or 9.00p to 1,464.00p on Thursday, having risen over 39 per cent in the last year.
Russ Mould, investment director at AJ Bell, said: ‘Jet2 has earned a reputation for being one of the most reliable names in the travel sector.
‘There is a lot of trust in the business and that’s helped it to increase market share over the years and become one of the big players in the lower-cost end of the market. Demand is typically robust and the business continues to do well.
‘Unfortunately, that’s not enough for investors. They’re currently spooked by a lack of earnings visibility and it doesn’t look like the situation is getting better any time soon.’
He added: ‘The sector has suffered from consumers leaving it until the last minute to book their flights. That’s led to a price war among airlines. Names like Jet2 are still managing to secure customers, but not quite at the optimum price.
‘The bulk of the summer season has been good for Jet2, with a bump in packaged holiday customers helping to offset lower ticket prices for flight-only travellers.
‘Sadly, its clientele is more last-minute Larry than book-ahead Betty. There is no end in sight for this booking trend and so it’s uncertain how many bums on seats it will eventually get for the final few months of its summer season and for its winter period.’
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