The chief executive, Steve Heapy, has blamed "government uncertainty" over travel restrictions, which are due to be reviewed ahead of May 17.
Mr Heapy said he had been "extremely disappointed at the lack of clarity and detail" and made the decision with a heavy heart.
It comes as the Global Travel Taskforce stopped short of confirming whether foreign holidays will be permitted from May 17 or which destinations people can visit without self-isolating on their return.
Announcing the group's findings, Transport Secretary Grant Shapps did confirm a traffic light system would be used to categorise countries based on risk, but the Department for Transport says it will not be until early next month that it will decide "which countries will be on which list".
But Mr Shapps also announced a "framework" for resuming overseas leisure travel which would require all arrivals to take pre-departure and post-arrival coronavirus tests.
Post-arrival tests must be the polymerase chain reaction (PCR) type which cost around £120, he revealed, despite pleas from the travel sector for the use of cheaper and faster lateral flow tests.
While Mr Shapps said the Government would work with the travel industry and private Covid testing providers to reduce the cost of foreign trips, the news drew a heated reaction from some industry figures.
Mr Heapy said: "Rather than answering questions, the framework leaves everyone asking more."
Jet2 said customers affected will have their bookings automatically cancelled with a full refund.