JET2 (JET2) – Travel & Leisure
| Price: £13.48 +3.5% | P/E: 5.9x |
| Market Cap: £2.59bn | Yield: 1.47% |
A double helping of good news today from AIM-listed low-cost airline and holiday firm Jet2 with record interim earnings and a new share buyback.
Revenue for the six months to the end of September was up 5% to £5.34 billion on the back of a record 14 million passengers, 750,000 more than a year ago and four million or 40% more than pre-pandemic levels.
The outlook for the winter 2025/26 season also looks promising with on-sale seat capacity 7.7% higher than a year ago and the late booking profile seen over the summer continuing.
Looking further out, the new base at Gatwick for Summer 2026 will add more capacity which the company reckons will allow it to target a further 15 million potential customers.
On the back of these strong results and the positive outlook, Jet2 has announced a further £100 million share buyback on top of its previous £250 million buyback which completed on 6 October.
Our View
Given the news flow over the summer has been pretty good it’s odd Jet2 shares were trading close to six-month lows ahead of today’s update.
Travel stocks aren’t top of our buy list, but even on current forecasts, which are likely to get upgraded, at these levels a bounce is surely overdue.
Read the press release here: https://www.jet2plc.com/investor-centre
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