Jet2 has this week posted a preliminary profit of £520.1m profit this week, and has confirmed the exercising of more orders for the Airbus A321neo.
The UK travel carrier has produced an incredible set of numbers for the financial year ending March 31, 2024.
Without further ado, let’s get into it…
The Numbers…
Profits at Jet2 rose by a whopping 33% to a preliminary figure of £520.1m compared to 2023’s figure of £390.8m.
Revenues rose 24% from just over £5bn to £6.2bn.
Passenger numbers grew a modest nine per cent to 17.72m, compared to the 16.22m handled back in 2023.
Highlights from Jet2 consisted of the opening of it’s new base in Liverpool Airport, and noted the upcoming launch of the Bournemouth Airport, which will begin flights in February 2025.
More Airbus A321neo Orders Jet2…
Within the financial results from Jet2, they also confirmed that they have exercised it’s remaining order of Airbus A321neo aircraft.
This means that between now and 2035, the airline will receive 146 units of the aircraft type.
Furthermore, this will be utilised for both fleet renewal, but also additional expansion in flights and new routes.
It is strong news for the carrier, and is reflective of their current financial position at present.
CEO Heapy: Proactive Approach Has Enabled Success…
In a full statement, Jet2 CEO Steve Heapy said the following on the financials, which enabled the firming of Airbus A321neo orders:
“We are very pleased to have been able to report another year of strong financial results as our Leisure Travel business delivered an improvement in Group Revenue of 24% to £6,255.3m (2023: £5,033.5m) and an increase in Group profit before FX revaluation and taxation of 33% to £520.1m† (2023: £390.8m).”
“These results underlined the popularity, resilience and flexibility of our holiday products and also our leading brand position, as despite the continuing inflationary pressures, millions of UK customers still chose to prioritise their disposable income for a rejuvenating and relaxing Jet2 holiday!”
“For the reporting period, seat capacity increased 10% to 19.73m. Although customer bookings were closer to departure, the business achieved a healthy average load factor of 89.8% (2023: 90.5%) with growth in average pricing for both our leisure travel products robust.”
“Higher margin per passenger Package Holiday customers grew 15% to 6.08m (2023: 5.29m) and were a materially higher mix of total departing passengers at 68.3% (2023: 64.9%), with Flight-only passengers reducing by 1% to 5.61m (2023: 5.69m).”
Future Investments…
“The Group commits considerable investment in order to be well prepared for its summer operations and Summer 2023 was no different, as we welcomed over 2,500 new Colleagues bringing the total number to over 15,000 at peak summer flying activity.”
“Although the widespread aviation sector disruption experienced in Summer 2022 was not repeated, as always, we anticipated that there would be unpredictable challenges posed by the external operating environment.”
“As a Customer First organisation, this means investing to embed sufficient resilience into our operations, including but not limited to, standby aircraft and crews, generous amounts of in-resort customer helpers, plus responsive ‘go teams’ in the event of unforeseen developments.”
“This proactive approach enabled us to effectively navigate Summer 2023 events such as Rhodes (wildfires) and Skiathos (flooding), the technological systems failure at NATS, together with the record number of air traffic control strikes across Europe and mitigate the impact on our Customers.”
Overall: Jet2 is Thriving, The Airbus A321neos Will Make The Difference…
In conclusion, Jet2 is in a very solid position at this time. The profitability has enabled significant investment, like the firming up of more Airbus A321neo aircraft.
Furthermore, with Summer 2024 bookings looking strong, there is further scope to grow further.
For now, all eyes will be on how the rest of the Summer performs for the airline.
If last year’s metrics are anything to go by, and the growth continues, it will be smooth sailing.
We could very well see profitability increase even further as the next few years go on.
What we do know is that Jet2 is a company to be reckoned with in the UK travel market.
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