Jet2 has reported a surge in summer bookings, outperforming the previous year and defying a challenging travel industry landscape exacerbated by the ongoing Iran war. The travel operator noted that demand for both package holidays and flights exceeded last summer's figures.
Summer seat capacity has increased by 7.6 percent to 19.9 million seats compared to last year. Jet2 CEO Steve Heapy expressed encouragement over the sustained demand, stating it provides confidence for the remainder of the financial year. The number of passengers booked to date rose by 8.8 percent, an increase from the 7.1 percent reported in July, with customers continuing to book closer to their departure dates. The airline's load factor has also seen an increase and is expanding at Gatwick Airport. Furthermore, winter 2026-27 seat capacity is projected to be up 8 percent year-on-year, with 5.9 million seats.
The broader aviation and leisure sectors have faced significant disruption due to the Middle East conflict, with concerns over jet fuel supply and the conflict's economic impact deterring some travelers. Recent oil price hikes have also led airlines to warn of potential fare increases as capacity is reduced ahead of the winter season. Competitor Ryanair recently cautioned that airfares across Europe could rise if prices remain elevated into next summer, a scenario that could lead to the failure of some airlines. Ryanair also adjusted its annual traffic target downward to mitigate exposure to unhedged oil prices during the typically less profitable winter months.
Jet2 has hedged 93 percent of its fuel for the fiscal year ending March 2027 at an average price of $753 per unit, compared to 90 percent hedged at $743 as of July. This strategy provides some insulation against volatile fuel costs.
In parallel with its positive trading update, Jet2 announced its intention to transition from the Aim market to the main market. Shares in the company rose 3.64 percent following this announcement. Investment director at AJ Bell, Russ Mould, commented that Jet2 has maintained a strong reputation for customer service as the travel sector normalizes. Mould suggested this reputation, combined with its fuel cost hedging, has enabled the company to issue a positive trading update. He also noted that the move to the main market appears to be a logical progression given the company's current strong market position.
Adam Vettesse, a market analyst at Etoro, characterized the listing move as a significant signal, indicating that Jet2 has outgrown the Aim market. Vettesse stated that a main market listing signals management's focus on scale, liquidity, and attracting a broader institutional investor base, with potential inclusion in the FTSE 250 index as an objective.