The Jet2 PLC (LON: JET2) share price plunged 14.5% after releasing the preliminary unaudited results for the year ended 31 March 2023. The company’s revenues rose to £5,033.5 million, marking a significant improvement from the £1,231.7 million recorded in 2022 and the £3,584.7 million recorded in 2020.
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The leisure travel company’s profit before FX revaluation and taxation rose to £390.8 million compared to last year’s £376.2 million loss. It was 48% higher than the pre-Covid financial year ended on 31 March 2020. There was no solid reason behind today’s decline, except for the market already having priced in the positive results.
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Jet2.com carried 16.22 million single-sector passengers, a 234% increase from the 4.85 million passengers in 2022. The company noted that higher-margin package holiday customers accounted for 64.9% of the overall traffic, an improvement from 2022’s 51.3%.
The airline group achieved a load factor of 90.5% during the year compared to 2022’s 69.2%. The firm also increased its seat capacity by 156% to 17.93 million seats due to the increasing popularity of its leisure travel products.
The group’s operating profits surged by 222% to £394.0 million compared to last year’s £323.9 million loss despite the company absorbing a delay and associated compensation costs of over £50.0 million due to the broader disruptions witnessed in the aviation sector.
Jet2.com’s management board paid a final dividend of 8.0p per share due to the improved financial performance. The dividend payout is aligned with the company's policy of paying a moderate dividend. The company did not pay a dividend in 2022.
Other highlights of the annual report revealed that the airline group took delivery of its first Airbus A321/A320neo aircraft, out of a firm order of 98, with the order having the option of being extended to 146 aircraft.
The group also invested in a new Sustainable Aviation Fuel (SAF) project to be constructed in the North West of England. This is one of the first such deals in the aviation industry.
*This is not investment advice.
Jet2 share price.
The Jet2 shares price plunged 14.45% to trade at 1077.5p, from Wednesday’s closing price of 1259.5p.
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