Jet2: How Yorkshire airline has spread its wings in turbulent times
Airline investors have always needed steady nerves. However, some of the big players remain bastions of hope during times of turbulence.
Jet2 is a case in point. Nothing, it seems, can halt its steady progress. It has delivered record passenger numbers and revenue during a period characterised by intense uncertainty.
During the last financial year, it extended the reach of its business, increasing the footprint to 14 UK bases with the successful launch of operations at London Luton and London Gatwick airports.
To quote Robin Terrell, the group’s chairman: “This expansion represents a pivotal moment in our growth journey as we continue to advance beyond our established Northern roots, expanding market share in the South of England and strengthening our position as a truly national consumer brand.” On-sale capacity for summer 2026 is currently 7.7 per cent ahead of last year at 19.9m seats, with booked-to-date passengers up 7.1 per cent and continued growth across both package holiday and flight-only products.
Jet2 said it has been encouraged by its performance for the summer to date, despite the Middle East conflict leading customers to book closer to departure, a trend it expects to continue across the peak summer period.
Even a well-run business like Jet2, it seems, can’t avoid all the wider negative economic pressures.
Richard Hunter, Head of Markets at interactive investor, noted that Jet2 has reset expectations lower through the year, due largely to a fast-moving late booking environment which was then compounded by the Middle East conflict.
He added: “Operating profit of £439.6 million represented a fall of 2 per cent on the previous year, in line with the range guidance in April of £435 to £440 million, but well below the previous £453 million at the half-year numbers. Gatwick start-up costs of £11 million, from where the group began flying in March and increased industry costs of £50 million were additional headwinds.”
Jet2’s results provided investors with reasons to be cheerful, such as revenues which grew by 4 per cent to £7.48 billion, a record for the group. Passenger numbers also soared to a new record, up by 5% to 20.83 million.
Mr Hunter added: “Of course, the macro environment remains cloudy and the propensity of customers to book late will continue to provide challenges. More broadly, investing in airline shares generally has never been for the faint hearted. The ferocity of competition and economic pressure remain as potential headwinds, as do some of the other issues which have historically blighted the sector, such as virus outbreaks, industrial action, volcanic dust clouds and higher fuel costs.
"The current macroeconomic and geopolitical concerns add to a potentially dangerous mix, underlying some of the potential hazards of investing in the airline sector,’’ Mr Hunter said.
Armed with a robust balance sheet and detailed plans for growth, Jet2’s bosses will have been pleased with the “strongly positive reaction” to the latest update from investors. It would be foolish to underestimate this dynamic Yorkshire business as it continues to spreads its wings.
Greg Wright is the deputy business editor of The Yorkshire Post