Jet2 (LON: JET2), the UK’s largest package holiday operator and third biggest airline by passenger numbers, has reaffirmed its full year earnings guidance while flagging that the ongoing conflict in the Middle East is compressing its booking lead times.
The company expects to report operating profit of between £435 million and £440 million for the financial year ended 31 March 2026, consistent with market expectations and inclusive of £11 million in launch costs for its new London Gatwick base.
Jet2 ended the period with a total cash balance of £3.3 billion and net cash of £2.0 billion, alongside an undrawn revolving credit facility of £500 million providing additional headroom.
The group returned £363 million to shareholders during the year through buybacks and other distributions, with its current £100 million share repurchase programme near completion.
Summer 2026 on sale capacity has been lifted 7.7 percent to 19.9 million seats, with passenger bookings running 6.2 percent ahead of the equivalent period last year.
Jet2 has hedged 87 percent of its summer fuel requirement at an average swap price of $707 per metric tonne, providing significant cost visibility at a time when spot jet fuel prices are materially elevated.
Chief executive Steve Heapy said customers who would historically book several months in advance are now waiting until much closer to their travel date, reducing forward visibility across the peak summer season.
Q1 load factors covering April, May and June are currently tracking in line with the prior year despite the compressed booking window.
The new Gatwick base, which began operations in late March 2026, has already booked over 400,000 passengers for the summer and is performing ahead of initial projections.
Heapy said Jet2’s strong fundamentals and reputation for customer service gave him confidence in the long term growth trajectory of the Business.
Full year preliminary results are scheduled for release on 8 July 2026.