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Jet2 Share Price Plunged 14.5% Despite Upbeat FY 2023 Results

Simon Mugo trader
Updated 6 Jul 2023

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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading