Jet2 reports excellent results
The leisure travel group reported excellent interim results, although the stock market clearly remains convinced that the consumer downturn is going to start to hurt given the muted response it gave to these. Despite the short-term concerns, the valuation looks compelling for such a well-managed business, that is well-liked by its returning customers. Read on here for our assessment of the latest numbers.
For the half year ended 30 September 2023, which includes the key summer trading period, Jet2 saw revenue climb 24% to £4.4 billion, while operating profit was 19% higher at £617m. That’s a fantastic performance in our book, with the operating margin an attractive 14%. Against the prior Summer 2022 period, seat capacity increased 7%, with Jet2.com achieving an average load factor of 90.7% (2022: 90.7%). By way of comparison, Easyjet’s load factor in its 4th quarter were 92%, although the vast majority of Easyjet’s passengers are lower-margin ticket only travellers. Higher margin customers Pleasingly for Jet2, higher margin per…