Jet2 Announces London Gatwick Base

Jet2 (LON: JET2) has announced a significant expansion with the establishment of a new base at London Gatwick Airport, marking its 14th base in the UK. The move aims to tap into Gatwick's extensive catchment area of approximately 15 million people, primarily targeting the leisure travel market.

This strategic development is expected to accelerate Jet2's growth, although it will require substantial short-term investment.

The airline will station five Airbus A321neo aircraft at Gatwick, with an additional aircraft positioned overseas, commencing operations in late March 2026. Jet2 anticipates incurring promotional and resourcing start-up costs in FY26, preceding the operational launch.

In FY27, the company plans to substitute three short-term leased aircraft to accommodate the A321neos at Gatwick. The higher costs associated with leased aircraft will be mitigated in FY28 by replacing them with new, more efficient A321neo aircraft from its existing Airbus order.

Profitability from the London Gatwick operation is projected to begin in FY29, with meaningful profit growth expected thereafter. This expansion also provides Jet2 with a strategic advantage for future growth opportunities at London Gatwick, including potential expansion with a second runway.

The initial investment in FY26 will impact short-term profitability, but analysts believe the long-term benefits outweigh the costs. The substitution of leased aircraft in FY27 will also affect operational costs before the arrival of new A321neo aircraft in FY28.

CEO Steve Heapy stated, “Today's announcement represents an incredibly exciting moment for Jet2… we see this as a once in a generation opportunity to accelerate our growth from the UK's largest beach and city leisure destination airport,” reinforcing the company’s growth strategy.