Jet2 Shares Surge After Solid Profit Growth, £250m Share Buyback

Jet2 (LON: JET2) shares rose sharply on Tuesday, currently up more than 13%, after the leisure travel group reported robust full-year profit growth and unveiled a £250 million share buyback programme.

For the year ending 31 March 2025, Jet2 said it expects to post pre-tax profits of between £565 million and £570 million, excluding a £10 million gain from aircraft disposals. 

That marks an increase of around 9% compared to the previous year and is in line with market expectations.

Despite repaying a £387.4 million convertible bond, the company ended the year with a strong balance sheet, including £3.2 billion in total cash and £1.1 billion in ‘own cash’.

Looking ahead, capacity for summer 2025 is 8.3% higher than last year, bolstered by the addition of new bases at Bournemouth and London Luton. However, the carrier cautioned that, to date, it is continuing to see a late booking profile that limits its forward visibility.

Even so, Jet2 said it remains well-prepared operationally, with aircraft and trained staff in place, and over 95% of its fuel and currency exposure hedged for the summer.

Chief Executive Steve Heapy said: “We are very pleased with how the 2025 financial year has ended with another year of healthy profit growth, which underlines the resilience, flexibility and popularity of our product offering.”

The company said it will cancel shares repurchased through the new buyback, enhancing earnings per share. Jet2 will publish its full-year results on 9 July.