The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Jet2 can easily afford a £billion for a special dividend or a but back, but are doing a better job by reinvesting in the business and increasing profits considerably every year IMO.
Or a decent dividend
C'mon guys there is too much cash on the balance sheet, lets shrink the share capital a bit - lets get away from a near 100% focus on new hubs and new aircraft
Massively over sold last week, £16-18 easily achievable short term.
Agreed, I've upped my holdings also.
It's definitely oversold imo and I've increased my holding.
Trading updates, spot the difference.
"Year ending 31 March 2024 (FY24)
On sale seat capacity for Summer 2023 is currently 7.2% higher than Summer 2022 at 15.26m seats. Forward bookings to date remain encouraging, with the mix of Package Holiday customers representing just over 75% of total departing passengers and 5ppts higher than Summer 2022 at the same point. In addition, average load factors for Summer 2023 are currently 0.7ppts ahead of Summer 2022."
"Year ending 31 March 2025 (FY25)
On sale seat capacity for Summer 2024 is currently 12.3% higher than Summer 2023 at 17.1m seats. The season is 55% sold, with average load factors 1.0ppt ahead of Summer 2023 at the same point. Forward bookings for package holiday customers are up by 13% and we are also seeing healthy demand from flight-only passengers for which bookings are currently up by over 18%. Consequently, the package holiday mix of total departing passengers is 74% and 1ppt below last year."
As reported " Since February, we have taken delivery of a further two new CFM powered A321neo aircraft from Airbus in line with our agreed delivery schedule, with both paid for from our own cash reserves."
In addition they will have paid to block book hotel accommodation for the summer season, which will be recouped from customers ..The bit of the RNS which has prompted the selloff is this "although recently, pricing has been more competitive, particularly for April and May departures."ie they are probably cutting prices...
It's the nature of travel businesses. They have to deploy more cash in the holiday season. The bottomline is that cash has been growing. You just have to compare it with the same period with the previous year. Make no mistake it's a very well run business with an extremely solid balance sheet.
I agree they are a good airline, that is priced in - the issue is the volatile cash level
Yeah but the world is drastically different to 2019 - co's have to hold more cash, the price of debt has rocketed
Just reread them and think it's the competitive pricing comment and uncertainty around full year guidance contributing to this
Still think all the fundamentals are great and surely the best UK airline currently. Economic moat through dominating many regional airports, Leeds for example. We flew with them last week and couldn't fault them.
Guidance maintained within range but anything that's not a 'beat' in the current market gets overly punished. I also recall discussing last summer after the FY results were published that the lack of forward guidance, which they gave valid reasons for, may have contributed to the drop. Same applies today for similar reasons, a fuller outlook now to be given in July.
Yes, you are quite correct, my error. It does say that they are the 6th and 7th of the type to be delivered and i am not sure when the other 5 were delivered or how they were paid for, but otherwise I have no idea and it is a very good question as it is some cash burn.
Whilst I agree in theory, Jet2 has never done a special dividend or share buyback -
I have always been an independent traveller, but I have used Jet2 in recent years and found them to be an excellent organisation.
Own cash would have been around £1.6bn compared to around £1,1bn last year if they didn't pay for the new aircrafts .
At the end of summer cash pile will be much bigger again. It's a seasonal thing.
"Total cash at 31 March 2023 was £2.62bn with an 'Own Cash' balance (excluding customer advance deposits) of £1.12bn."
"Total cash at 31 March 2024 of £3.2bn and an 'Own Cash' balance (excluding customer advance deposits) of £1.3bn."
Standard seasonal variation. They maintain their fleet and keep staff on through the quieter winter months to ensure they are ready to take the spring to autumn opportunities. Particularly beneficial recently when airlines have found it difficult to find experienced staff. There's other high winter costs to cover from reduced cash flow at that time as well, more details in previous annual reports/presentations.
You can see the same variation between Sept/March in previous years.
A321 Neo are about US$140m each so that explains £220m but reduction is c. £820m
In the RNS it does say that since February they have taken delivery of 2 new A321 neo aircraft paid for with their own cash. I imagine that might explain the reduction in their own cash reserves?
Jet2 own cash has fallen from £2.12bn (30 Sept 23) to £1.3bn - any info as to why?
I'm happy with the update. Profits up 33% and from bookings and seat capacity increse it seems there will be a similar in crease in profits this year too. This is the best stock in the aviation sector IMO.
Agree, the own cash position is drastically different to where is was pre-covid, cash including customer deposits is same than the market cap and the £1.3bn of own cash is way bigger than anything they have had before (2019 it was around £60-70m). Wonder what they will do with it all, a special div or buyback would seem sensible whilst putting the rest to work investing in the business. 13% capacity increase should drive an upgrade through the year irrespective of the wider environment