The popularity of its package holidays has helped Jet2 generate a 24% rise in revenue and boosted operating profits.
New unaudited results for the year to the end of March show the Leeds Bradford Airport-based plc booked revenue of £6.25bn, compared to £5.03bn the year before, while operating profits rose 9% to £428.2m. Holidaymakers increasingly plumped for higher margin package deals and booked closer to their departure dates.
The results are the first under the stewardship of Jet2 non-executive chairman Robin Terrell, who took over from founder and chairman Philip Meeson, who stood down in September. Mr Terrell said he was extremely pleased with the firm’s performance since the pandemic – pointing to a near doubling of its pre-Covid revenue.
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To further drive growth, Jet2 has exercised the remaining 36 purchase rights of a Airbus aircraft order first announced in late 2021. The deal gives the holidays firm a pipeline of 146 A321neo aircraft through to 2035.
Meanwhile, Summer 2024 on sale seat capacity is said to be 12.3% higher than Summer 2023 at 17.16m seats. The number of package holiday customers are up by 7%, representing 72% of overall flown passengers and flight only customers are up 16%
Mr Terrell said: “Our strategy remains consistent: to be the UK’s Leading and Best Leisure Travel business. It was a challenging year for UK consumers with rising inflation and elevated interest rates putting pressure on disposable income levels. However, against this backdrop we made further progress on our growth strategy, delivering record passenger numbers, revenues and profitability and strengthening our balance sheet to underpin future growth and provide financial resilience and flexibility.
“Having successfully launched operations from Liverpool John Lennon Airport in March 2024, we were delighted to announce another new base at Bournemouth Airport where flying operations will commence from February 2025. This means that more holidaymakers across the South of England will benefit from our multi-award winning leisure flights and ATOL protected package holidays.
“Our well capitalised balance sheet enabled the Group to continue to invest for long-term growth, including the integration of a further six new Airbus A321neo into our aircraft fleet, plus the launch of our Retail Operations Centre in October 2023, the first of its kind in the UK aviation industry – both will bring notable improvements to our Customer First proposition.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
