Jet2 has revealed that it has locked in prices for 87% of its jet fuel needs this summer in a trading update issued this morning.
The airline and operator had already promised customers that it will not impose fuel surcharges, despite the rising cost of fuel due to the ongoing conflict in the Middle East.
It said that, despite the crisis, it has booked 6.2% more passengers on flights and packages than this time last year, against a capacity increase of 7.7%.
However, it admitted that since the outbreak of the US war with Iran, customers are booking increasingly close to departure.
“At present, Q1( April, May, June) combined average load factor is in line with the prior year, with the current geopolitical uncertainty limiting visibility for the peak summer season and beyond,” it added.
“As previously stated, we continue to invest in load factor and remain fully committed to pricing that is attractive and represents real value to our customers.”
The company said it expects to make an operating profit for the year to the end of March 2026 of £435 million to £440m, in line with market expectations.
This includes £11m of startup costs for the launch of the London Gatwick base in March.
Jet2 said its balance sheet ‘remains strong’, with £3.3 billion of cash at the end of March and access to a £500m loan, if required.
“This sensible and disciplined approach to balance sheet management enables us to navigate short-term volatility effectively, continue to invest in future growth opportunities, and has allowed us to return £363m of capital to shareholders during the year,” it said.
“Looking ahead, we believe the strength of Jet2’s end-to-end business model continues to differentiate the Group within a competitive market.
“In addition, the successful operational launch at London Gatwick takes Jet2 to the UK’s biggest holiday airport for the first time, with over 90% of the British public now within a 90-minute drive of one of Jet2’s bases.”
CEO Steve Heapy, pictured, said Gatwick is performing ‘ahead of initial expectations’, with over 400,000 passengers booked for summer.
He added: “Clearly, we continue to monitor the situation in the Middle East but remain focused on our medium-term goals.”
Jet2 will deliver its full-year results on 8 July.
