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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."
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.
"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."
Jet2 is financialy stronger than any other travel company . Hedge funds are more hesitant to short Jet than other airlines.
"Total cash balance (including money market deposits) was £3,214.6m, an increase of 14% (2022: £2,830.7m). Our Own Cash* (excluding customer deposits) of £2,121.2m increased by 8% (2022: £1,968.6m)."
NESF held up despite market turmoil.
Jet2 has no business in the Middle East. iIt's a tour operater which has it's own airline and books holidays for within Europe. Jet2 also has a policy to hedge most of its fuel requirements well in advance so oil price rises shouldn't affect it much either IMO.
"Iran’s IRGC seizes ‘Israeli-linked’ ship near Strait of Hormuz"
Most of Middle East oil flows through the Strait of Hormus. Troble there means oil prices going up. Renewable energy becomes more impotant then ever now. It's cheap, clean and ralatively more reliable too.
"JET2 - The British leisure travel company said in July it had 81.8% of fuel hedged over the next 12 months."
Jet2 is basically a holiday company with it's own airline. Most of the profits come from their package holidays business. They shouldn't be affected much by oil prices IMO.
The danger is that oil prices could rise masively if Israel destroys Iranian oil instalations in retaliation to attack. Both of these countries are known to have developed atomic weopons too. Hope it won't get as bad as that.
A record-breaking March rounded off a very strong winter season at London Stansted (a Jet2 base) that resulted in the airport registering its busiest ever 12-month period.
https://airport-world.com/records-tumble-at-london-stansted-after-strong-winter-season/
Manchester Airport ( a Jet2 base} has broken passenger records for the sixth consecutive month. It served 2.1m passengers in March – up 12% on March 2023 and above the 2019 pre-pandemic level of 2m passengers.
https://mediacentre.manchesterairport.co.uk/record-breaking-run-continues-as-manchester-airport-hits-another-milestone-on-13bn-transformation-with-launch-of-new-two-mile-long-baggage-system/
The travel stocks making the most of the recovery.
Jet2 likely to double its pre-pandemic record profits.
https://www.investorschronicle.co.uk/ideas/2024/04/04/the-travel-stocks-making-the-most-of-the-recovery/