By Scott Kanowsky
Investing.com — Leisure airline Jet2 PLC (LON:) now expects full-year pre-tax earnings to match highest estimates, after a rise in half-year earnings fueled by solid customer demand.
Profit before foreign exchange and tax revaluation for the six months ended 30 September more than tripled compared to the same period last year to £505.0 million (£1 = $1.2079) on strong selling of its Package holidays following the reopening of many of the international travel network from COVID-19 restrictions in early 2022. The figure is also 44% of pre-COVID levels.
Meanwhile, “robust” price and cost controls helped offset £50million in spending stemming from widespread disruption at airports over the summer, Jet2 said.
The group, known for offering cheap scheduled and charter flights to UK holidaymakers, added that winter demand ahead of the crucial post-Christmas booking period was “encouraging”.
As a result, Jet2 forecast full year earnings before currency revaluation and taxation for the year ended March 31st to exceed current average market expectations.
However, the company warned that it still faces headwinds from broader economic trends, including rising pressure on fuel input costs, a strengthened economy and wage increases.
“This leads us to conclude that margins may come under pressure, but encouragingly, the strength of our post-Covid recovery underscores our belief that customers genuinely value their weeks in the sun and want to be well looked after throughout their holiday experience,” said he chief executive officer Philip Meeson in a statement.
London-listed Jet2 shares rose in early trade on Thursday.