Jet2 (JET2) H2 2026 earnings summary

Executive summary

• Achieved record revenue of £7,482.1m for FY26, up 4% year-over-year, with flown passengers increasing 5% to 20.83m, driven by new bases in London Luton and Bournemouth.

• 80% of revenue derived from package holiday customers, reflecting strong demand and a resilient business model.

• Maintained resilient operating profit despite absorbing start-up costs at Gatwick and industry-wide cost pressures, including staff premiums and employment tax increases.

• Returned £363 million to shareholders via buybacks and dividends, and launched a new £250 million buyback program to be completed by May 2027.

• Ended the year with over £2 billion in net cash, supporting flexibility for growth and shareholder returns.

Financial highlights

• Revenue grew 4.3% year-over-year, driven by increased passenger numbers and a resilient package holiday mix, with package holidays representing about 80% of revenue.

• Operating profit was £439.6m, down 2% from £446.5m in FY25; EBITDA rose 1% to £746.3m.

• Free cash flow reached £495.4 million, with £2.6 billion generated since the end of the COVID pandemic.

• Basic EPS stable at 211.2p; return on capital employed at 14.4%.

• Total cash up 4% year-over-year, with £1.2 billion own cash and an undrawn £500 million revolving credit facility extended to October 2030.

Outlook and guidance

• Bookings for summer 2026 are encouraging, with average load factor for the first four months 1.2 percentage points ahead of the prior year.

• Over 90% of jet fuel and 85% of FX hedged for FY27, providing cost certainty.

• Cost inflation for FY2027 expected at just over 3%, with additional FX headwinds bringing it closer to 3.6-3.7%.

• Summer 2026 seat capacity up 7.7% to 19.9m, with strong late booking momentum despite geopolitical uncertainties.

• Medium-term targets include 2x net debt to EBITDA and maintaining £600-700 million own cash at year-end.