11th Jul 2024 17:03
(Alliance News) - Jet2 PLC reported improved annual earnings and set out a decent outlook for the key summer period, supporting shares in the holiday company.
The Leeds, England-based firm said in the year that ended March 31, pretax profit jumped 43% to GBP529.5 million from GBP371.0 million the year before. Revenue increased 24% to GBP6.26 billion from GBP5.03 billion.
Jet2 declared a 10.7 pence per share final dividend, up 34% from 8.0p previously.
Operating expenses grew 26% to GBP5.83 billion from GBP4.64 billion.
Total flown passengers rose 9.2% over the year to 17.7 million from 16.2 million, and the company finished the year with an increased total cash position of GBP3.18 billion, up 21% from GBP2.62 billion.
A new base at Liverpool airport "is proving successful" while the company's 12th UK base at Bournemouth airport is due to commence operations in February.
Summer 2024 on sale seat capacity is currently 12% higher than last year at 17.2 million seats. Booked to date package holiday customers are up 7.0%, representing 72% of overall flown passengers, with flight-only passengers increasing by 16%.
Chief Executive Officer Steve Heapy said: "Summer 2024 pricing to date for both products is showing a modest increase, helping to offset in part previously announced input cost increases. As ever, we remain mindful of the current macro-economic and geo-political environments and how these may influence future consumer spending patterns."
However, Heapy said the firm's offering is "resilient and popular", even during times of economic uncertainty.
Analysts at Jefferies commented: "Stronger-than-expected pricing commentary and higher net interest income (rates higher for longer) should offset any concerns around a later booking profile. Investors should be encouraged by the colour around fleet delivery and capital allocation."
Jet2 shares were up 7.7% at 1,384.87 pence on Thursday in London
By Eric Cunha, Alliance News news editor
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