Jet2 Posts £388 Million Hedge Gain but Profit Falls 7 Percent; £250 Million Buyback Announced

Jet2 recorded a £388 million fair-value gain on its jet fuel hedge contracts in the year to the end of March. The gain stemmed from previously locked-in lower fuel prices that rose in value after market prices increased during Middle East conflict. Revenue rose 4 percent to £7.5 billion.

Profit before tax slipped 7 percent to £551 million, partly because of lower income on cash deposits. The airline absorbed £50 million in additional regulatory costs during the period. Jet2 announced a £250 million share buyback on the same day its annual accounts were published.

The company also expanded its Gatwick base with six aircraft in March, extending operations to within a 90-minute drive of more than 90 percent of the UK population. Seat capacity increased 8 percent to 24 million, and the airline carried 20.8 million passengers, a 5 percent rise. Cash inflow fell 67 percent to £77 million after customers delayed bookings amid geopolitical uncertainty.

Chief executive Steve Heapy said the results showed the impact of higher regulatory costs. “Don’t treat the aviation or holiday industry as a cash cow, because taxes increase the price of flying,” he stated. ” The share price rose 9 percent to 1,486p on the day the accounts appeared and stands 5 percent higher year to date.