Jet2 beats expectations, shares jump

Investing.com — Shares of Jet2 Plc (LON:) 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.