Jet2 beats expectations, shares jump

Investing.com -- Shares of Jet2 Plc (LON:JET2 ) jumped over 6% on Thursday after the company reported its first-half results for the fiscal year 2025, beating market expectations. 

The UK-based airline and package holiday provider reported a 16% increase in profit before tax and foreign exchange revaluation, to £772.4 million, well ahead of the £623.6 million consensus forecast.

Revenues for the six months rose by 15% to £5.085 billion, driven primarily by the company’s package holiday segment, which saw revenues climb by an identical 15% to £4.173 billion. 

The number of package holiday customers grew by 8%, reflecting continued demand for Jet2’s offerings despite economic headwinds. 

Operating profit posted a 13.7% increase to £701.5 million, with an EBIT margin of 13.8%, remaining steady year-over-year.

Net cash surged to £2.26 billion from £1.73 billion, and the interim DPS increased by 10% to 4.4p.

Analysts at RBC Capital Markets noted that the company is on track to surpass market expectations for full-year profit before FX revaluation and tax, which they had previously estimated at approximately £541 million. 

“There is no guided range, but we expect ~3-5% consensus PBT upgrades in FY25E and more modest consensus PBT upgrades in FY26E given NI cost headwinds post the UK budget,” said analysts at RBC Capital Markets in a note. These headwinds are projected to add around £25 million in labor costs.

RBC also flags that the company’s valuation multiples remain low compared to peers, leaving room for further upside as investor sentiment catches up with operational strength.

Source: Investing.com