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Jet2 shares climb as record passengers drive 33% profit boost

Jet2 shares has announced its preliminary unaudited results for the year ended 31 March 2024, revealing a 24% increase in revenue, reaching £6,255.3m compared to £5,033.5m in the previous year.

Jet2 shares were 3% higher at the time of writing.

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The company is among a plethora of travel companies enjoying unwavering demand from holidaymakers determined to make up for the restrictions during the pandemic.

The group’s operating profit rose 9% to £428.2m, while profit before foreign exchange revaluation and taxation jumped by 33% to £520.1m. Profit before taxation surged 43%, amounting to £529.5m, with profit after taxation increasing by 37% to £399.2m.

These financial improvements were underpinned by record passenger numbers. Total flown passengers grew by 9% to 17.72 million, with a notable 15% increase in higher-margin package holiday customers, who now represent 68.3% of total flown passengers.

“When the weather is as poor as it has been in the UK, it’s no wonder the public have been eager to fly to brighter climates. Jet2’s results tick a lot of the right boxes – revenue, profit and dividends are all up and it flew a record number of passengers,” said AJ Bell’s Russ Mould.

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“Consumers continue to do everything they can to have a week or two away on holiday, even if that means cutbacks elsewhere.”

The company’s financial position has been further strengthened, with year-end total cash increasing by 21% to £3,184.7m. ‘Own Cash’, excluding advance customer deposits, stood at £1,331.4m, providing the group with financial resilience and flexibility.

In light of this positive performance, the Board has rewarded investors with an increase in the final dividend by 34% to 10.7p per share.

Looking ahead, Jet2 has expanded its fleet, exercising its remaining Airbus order purchase rights. The company now has a delivery stream of 146 firm ordered A321neo aircraft scheduled through to 2035, indicating long-term growth plans.

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