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DALLAS - Leeds Bradford (LBA)-based Jet2 (LS) has upgraded its annual profit forecast after revealing an optimistic outlook for the forthcoming summer season.
In an official statement, the airline said it expects to report a group profit between £387m and £392m (US$481m-US$487m) for the year ending March 31, 2023. This is an increase of some 5% from the lower end of the previous estimate given at the beginning of the year.
It revealed that its on-sale seat capacity for this summer was 7.2% higher than the previous year, with 15.26 million seats. Its forward bookings, particularly in its package holiday segment, were also “encouraging,” sitting at around 75% of its total departing passengers, five percentage points (ppts). The average load factor for Summer 2023 is also up by 0.7ppts compared to Summer 2022.
Headwinds
However, the UK’s largest leisure carrier also revealed that it faced numerous “input cost pressures.” These include fuel, carbon taxes, wage increases, and a strengthened US dollar. It also added that it remains concerned about the ongoing threat of European air traffic control disruption this coming summer.
In a bid to mitigate any disruption this summer, the airline went on to explain that it had been investing heavily “to ensure we have adequate, fully trained resources to operate with our normal high standards of customer care.”
“In addition, we have increased our operational resilience by taking control of handling operations at a further two of our UK bases ‐ Bristol and Newcastle ‐ meaning we now self‐handle at seven of our ten UK bases and are therefore not reliant on third parties for these aspects of our operations.”
The preliminary results for the year ended March 31, 2023, will now be announced on July 6, 2023, where a “fuller outlook” for the summer 2023 trading period will also be provided.
https://airwaysmag.com/20-years-on-jet2-successful/
Featured Image: Jet2 G-GDFD Boeing 737-800. Photo: Iain Marshall/Airways.
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