Pre-tax loss grows for Jet2

Airline and holidays group Jet2 saw its pre-tax loss grow despite a recovery in turnover in the six months to the end of September.

By John Corser

Published Nov 18, 2021

A Jet 2 passenger plane arrives at Birmingham Airport. All UK travel corridors, which allow arrivals from some countries to avoid having to quarantine, have now closed. Travellers arriving in the UK also have to show proof of a negative Covid-19 test to be allowed entry. Picture date: Monday January 18, 2021.

Revenue was up 43 per cent to £429.6 million with the loss increasing by 73 per cent to £205.8m.

Although seat capacity on aircraft for the period increased by 86 per cent to 2.68 million, the average load factor fell to 57.3 per cent from 69 per cent a year earlier.

Fragile consumer confidence arising from the three-weekly UK Government traffic light reviews undertaken throughout the period meant that customer bookings were significantly closer to departure than normal.

In order to meet the future anticipated growth of the leisure travel business and to refresh the existing aircraft fleet, Jet2 entered into agreements with Airbus for 51 new A321 NEO aircraft, with agreed flexibility to extend the order up to 75.

Jet2, which operates flights from Birmingham Airport, said that following the recent dissolution of the Green and Amber lists from October 5 and the easing of passenger testing requirements, forward bookings for Winter 2021-2022 have been markedly stronger and average load factors much improved.

Bookings for next summer are encouraging and the group remains optimistic that it will experience a return to previously normal operations and customer volumes.