Jet2 Share Price Dropped Despite Upbeat H1 Fiscal 2023 Results

The Jet2 PLC (LON: JET2) share price dropped 6.91% at 10:47 GMT after announcing its unaudited interim results for the half year ended 30 September 2023. The leisure travel group reported that its operating profit surged by an impressive 19%, reaching £617.0 million, compared to the £516.6 million recorded in 2022.

The Group's profit before foreign exchange revaluation and taxation has shown even more remarkable growth, soaring by 32% to £664.6 million, a substantial increase from the £505.0 million reported in 2022.

Despite various challenges, the company has increased seat capacity by 7% compared to Summer 2022. Impressively, the business maintained an average load factor of 90.7%, which is on par with the previous year.

Additionally, the company achieved higher margins per passenger, with a Package Holiday mix of total departing passengers increasing by 4.9 percentage points to 70.8% from 65.9% in 2022.

The flight-only net ticket yield per passenger sector reached £124.09, marking an 18% increase over the same period in the previous year. Moreover, the average price of a Jet2holidays package holiday rose by 11%, reaching £855.

Despite the successes, the company faced challenges from external disruptions, including the National Air Traffic Services (NATS) failure, Rhodes wildfires, and flooding in Skiathos. These issues collectively resulted in an approximate loss of profitability amounting to £14.0 million.

The total cash balance, including money market deposits, increased by 14% to £3,214.6 million in 2023, compared to £2,830.7 million in 2022. The company's cash, excluding customer deposits, also saw a substantial 8% increase, reaching £2,121.2 million in 2023, up from £1,968.6 million in 2022.

The company has ambitious plans for the Winter 2023/24 season, including a 21% increase in on-sale seat capacity to 4.49 million. While recent bookings have shown a slight slowdown, with average load factors currently 1.3 percentage points lower than Winter 2022/23, the average pricing remains robust.

The company is on track to deliver a Group profit before FX revaluation and taxation for the year ending 31 March 2024, projected to fall between £480 million and £520 million, in alignment with previous guidance.

Jet2 share price. 

The Jet2 share price dropped 6.91% to trade at 1060.3p from Wednesday’s closing price of 1139.0p.