Jet2 says summer price increases will be ‘modest’
The CE of Jet2 vowed customers would face only “modest” price increases this summer as the low-cost airline and tour operator reported record earnings on the back of a continued travel boom. The UK low-cost airline and tour operator posted a 43% rise in annual pre-tax profits on Thursday to GBP529.5mn thanks to a surge in demand, with profits, revenue and passenger numbers all hitting new highs. The Leeds-based company — which flies from 12 UK airports to more than 70 destinations — said it expected demand to remain robust, but pledged to keep prices “attractive” over the peak summer months, in part to adjust to a trend in which customers were leaving it later to book trips. Jet2 said “passengers are currently booking much closer to departure and therefore, pricing for our flight-only and package holiday products must remain attractive”. The cost of the group’s package holidays rose 11% last year to GBP830 on average, as it raised fares to offset rising input cost inflation. Flight-only net ticket yield per passenger increased 14% to GBP114.23. On Thursday, Jet2 said it was “mindful” of the economic pressures on customers, and it was only planning a “modest increase” to summer prices. CE Steve Heapy said: “Demand is as strong as ever . . . People just want to get away and escape the terrible weather they’ve seen in the UK, and I don’t see that changing anytime soon.” But he said customers booking at a later stage meant the group’s load factor (a measure of seats filled) was lower year on year, currently standing at 73.4%, down from 75.2%. Jet2 posted a 24% increase in turnover to GBP6.3b, and said “future confidence” in the strength of demand had led it to exercise its remaining purchase rights for Airbus aircraft, with 146 A321neo planes to be delivered by 2035.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-07-12/unaligned/jet2-says-summer-price-increases-will-be-2018modest2019
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Jet2 says summer price increases will be ‘modest’
The CE of Jet2 vowed customers would face only “modest” price increases this summer as the low-cost airline and tour operator reported record earnings on the back of a continued travel boom. The UK low-cost airline and tour operator posted a 43% rise in annual pre-tax profits on Thursday to GBP529.5mn thanks to a surge in demand, with profits, revenue and passenger numbers all hitting new highs. The Leeds-based company — which flies from 12 UK airports to more than 70 destinations — said it expected demand to remain robust, but pledged to keep prices “attractive” over the peak summer months, in part to adjust to a trend in which customers were leaving it later to book trips. Jet2 said “passengers are currently booking much closer to departure and therefore, pricing for our flight-only and package holiday products must remain attractive”. The cost of the group’s package holidays rose 11% last year to GBP830 on average, as it raised fares to offset rising input cost inflation. Flight-only net ticket yield per passenger increased 14% to GBP114.23. On Thursday, Jet2 said it was “mindful” of the economic pressures on customers, and it was only planning a “modest increase” to summer prices. CE Steve Heapy said: “Demand is as strong as ever . . . People just want to get away and escape the terrible weather they’ve seen in the UK, and I don’t see that changing anytime soon.” But he said customers booking at a later stage meant the group’s load factor (a measure of seats filled) was lower year on year, currently standing at 73.4%, down from 75.2%. Jet2 posted a 24% increase in turnover to GBP6.3b, and said “future confidence” in the strength of demand had led it to exercise its remaining purchase rights for Airbus aircraft, with 146 A321neo planes to be delivered by 2035.<br/>
