Jet2 says summer passengers booked to date rise 7.1% as tensions ease

Jet2 reported a £551 million pretax profit for the year ended March 31, a $536 million balance-sheet gain from fuel derivatives and a new $335 million share buyback as bookings improved.

Summary

Jet2 said demand for summer travel has strengthened in recent weeks as easing geopolitical tensions encouraged more customers to press ahead with holiday plans, with booked-to-date passengers for summer up 7.1%. The British travel company also reported a $536 million balance-sheet gain tied mainly to favorable fair-value movements on fuel derivatives as higher jet fuel prices boosted the value of its hedges during the Middle East conflict. For the year ended March 31, Jet2 reported profit before taxation of £551 million, down 7% from £593.2 million a year earlier, while group revenue rose 4% to $10.05 billion and cash inflow fell 67% to about $103 million as travelers booked closer to departure. Jet2 said it would launch a $335 million share buyback, while Chief Executive Steve Heapy warned against treating aviation as a “cash cow” after the company absorbed $67 million in additional regulatory and tax costs over the past year.

Terms & Concepts
  • fuel derivatives: Financial contracts linked to fuel prices that companies use to hedge against swings in jet fuel costs.
  • fair-value movements: Changes in the reported market value of assets or contracts, which can create gains or losses in financial statements.
  • share buyback: A program in which a company repurchases its own shares, often to return cash to investors.