By Pierre Bertrand
Jet2 said that bookings for this year's summer travel season have risen on year, but warned that its profit margin for next fiscal year could come under pressure amid a continued late-booking trend by customers.
The London-listed leisure-travel group said bookings for the months of April, May and June were up by 7% and that bookings for packaged holidays had risen 4%. Flight-only bookings grew 19%.
The company's overall average load factor, a measure of how full its planes are, is broadly flat for the three-month period to come.
The company added that prices have modestly increased on average for packaged holidays, and slightly increased for flight‑only tickets.
Jet2 said it expects an 8% to 10% increase in profit before foreign-exchange revaluation and taxation for the year ending March 31 of between 560 million and 570 million pounds ($706.4 million-$719 million).
The company had previously guided for a figure ahead of market expectations of 541 million pounds.
Despite the expected on-year increase and the rise in summer bookings so far, Jet2 boss Steve Heapy said that current macroeconomic conditions including the many demands placed on consumer incomes, combined with cost headwinds, could mean profit margins in the year ahead come under some pressure.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
February 19, 2025 03:13 ET (08:13 GMT)
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