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Jet2 PLC
(LSE:JET2)
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Rating:79Outperform
Price Target:
1,680.00 p
▲(37.14% Upside)
Action:Reiterated
Date:07/09/26
The score is driven primarily by strong financial performance—especially balance-sheet strength and sustained profitability—supported by an attractive low P/E valuation. Technicals indicate a healthy uptrend but with near-overbought risk. Earnings call commentary was constructive (record results, strong cash, buybacks) but tempered by cost inflation, yield pressure, and execution/leverage risk tied to the fleet investment program.
Positive Factors
Balance sheet strength
A >£2bn net cash position and multi-year positive free cash flow materially de-risk the business versus peers. This liquidity supports planned fleet investment, ongoing buybacks and a £500m undrawn RCF buffer, improving resilience to demand shocks and preserving strategic optionality over 2–5 years.
Negative Factors
Accommodation and supplier inflation
With hotels representing ~45% of cost base, sustained supplier inflation outpacing package pricing compresses margins. Contracting constraints and limited ability to fully pass through higher accommodation and airport charges create ongoing margin pressure absent mix shifts, renegotiation or material pricing power gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A >£2bn net cash position and multi-year positive free cash flow materially de-risk the business versus peers. This liquidity supports planned fleet investment, ongoing buybacks and a £500m undrawn RCF buffer, improving resilience to demand shocks and preserving strategic optionality over 2–5 years.
Read all positive factors
Jet2 PLC (JET2) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.73B
Dividend Yield1.18%
Average Volume (3M)519.03K
Price to Earnings (P/E)7.1
Beta (1Y)0.96
Revenue Growth4.30%
EPS Growth2.05%
CountryUK
Employees14,053
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding190,915,470
10 Day Avg. Volume396,865
30 Day Avg. Volume519,032
Financial Highlights & Ratios
PEG Ratio-5.61
Price to Book (P/B)1.05
Price to Sales (P/S)0.29
P/FCF Ratio4.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,652.29Price Target Upside34.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.27
Revenue Forecast (FY)£8.07B
Jet2 PLC Business Overview & Revenue Model
Company Description
Jet2 plc, a leading UK-based leisure travel group, provides a range of holiday services through its subsidiaries. It operates regular flights for holidaymakers to desirable destinations across the Mediterranean, the Canary Islands, and various Eur...
How the Company Makes Money
Jet2 PLC makes money primarily from two closely linked activities: (1) selling airline seats through its Jet2.com operation and (2) selling package holidays through Jet2holidays. Airline revenue is generated from passenger ticket sales and related...
Jet2 PLC Earnings Call Summary
Earnings Call Date:Jul 08, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture: record passengers and revenue, strong cash generation, a robust balance sheet, heavy investment in fuel-efficient A321neos with clear multi-year cost benefits, high customer satisfaction and loyalty, and an active shareholder return program. Offsetting this are meaningful cost headwinds (hotel inflation, airport/handling fees, SAF premiums, labor-related costs), lower flight-only yields due to strategic pricing to support load factors, later booking patterns driven by geopolitical uncertainty, and increased future leverage as aircraft deliveries are financed. Management communicates confidence and clear mitigation plans (hedging ~90% fuel/FX, fleet efficiency gains, Gatwick roll-out, data-driven marketing), but some medium-term execution and margin risks remain.Positive Updates
Record passengers and revenue
Flew over 20 million passengers (up 5% year-over-year, ~1 million additional passengers) and delivered record revenue, up 4.3% versus prior year.
Negative Updates
Cost inflation pressures
Underlying cost base (excluding Gatwick startup) rose ~4.5%, slightly ahead of revenue growth. Hotel accommodation costs (c.45% of cost base) up ~6.5%; landing/handling/Eurocontrol fees up ~8.6%.
Read all updates
Q4-2026 Updates
Positive
Negative
Record passengers and revenue
Flew over 20 million passengers (up 5% year-over-year, ~1 million additional passengers) and delivered record revenue, up 4.3% versus prior year.
Read all positive updates
Company Guidance
The call set out detailed financial and operational guidance: for the year to 31 Mar 2026 Jet2 finished with >£2.0bn net cash after flying c.20.0m passengers (+5%), delivering record revenue (+4.3%), an operating margin of 5.9%, basic EPS £211.2 and ROCE 14.4%; operating cash flow was £900m, CapEx £391m, free cash flow £495m (£2.6bn since COVID) and £363m was returned to shareholders with a further £250m buyback announced to complete by 31 May 2027. Management reiterated medium‑term targets of c.2x net debt/EBITDA on an own‑cash basis within 3–5 years, holding own cash of £600–700m at the year‑end trough and keeping a £500m undrawn RCF, while averaging c.£900m p.a. CapEx over the next four years to fund the Airbus A321neo pipeline (company citing c.124–155 further neos to 2035), with 31 neos in service in summer 2026 (139 fleet total; target ~162 by 2032) and expected neo savings of ~£190m p.a. by 2030 (~£10 seat saving vs 737‑800; 232 seats, +23% vs 737‑800, 20% better fuel efficiency per seat). Key trading and cost metrics/guidance included flight‑only passengers 7.64m (+15%) and package holidays 6.62m (+1%) (package represented ~80% of revenue this year though medium‑term mix guidance is 60–65%), combined booked load factor +1.2pp year‑on‑year for the first four months, non‑ticket revenue +4% per passenger, underlying costs +4.5%, hotel costs (c.45% of cost base) +6.5%, landing/handling/navigation (c.8.5% of cost base) +8.6%, fuel (~10% of cost base) down ~1%, incremental SAF premiums £32m, NLW/employer NI headwind £18m and £11m of Gatwick start‑up investment; and hedging cover of c.90% of jet fuel at an average $743/ton and ~85% FX for the year, with c.35% hedged for 2028.Jet2 PLC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.48B | 7.17B | 6.26B | 5.03B | 1.23B |
| Gross Profit | 868.10M | 898.70M | 841.20M | 707.70M | -147.90M |
| EBITDA | 732.50M | 933.30M | 849.20M | 579.20M | -172.00M |
| Net Income | 410.50M | 446.80M | 399.20M | 290.80M | -315.40M |
Balance Sheet | |||||
| Total Assets | 6.78B | 5.91B | 5.57B | 4.53B | 3.99B |
| Cash, Cash Equivalents and Short-Term Investments | 3.29B | 3.15B | 3.18B | 2.62B | 2.23B |
| Total Debt | 1.28B | 1.14B | 1.46B | 1.38B | 1.57B |
| Total Liabilities | 4.72B | 4.30B | 4.16B | 3.51B | 3.10B |
| Stockholders Equity | 2.06B | 1.61B | 1.41B | 1.01B | 896.60M |
Cash Flow | |||||
| Free Cash Flow | 495.40M | 659.10M | 685.50M | 755.50M | 642.60M |
| Operating Cash Flow | 886.60M | 1.06B | 1.09B | 952.10M | 751.00M |
| Investing Cash Flow | -178.60M | -613.90M | -482.30M | -675.80M | -1.29B |
| Financing Cash Flow | -373.80M | -696.60M | -124.60M | -370.30M | 201.00M |
Jet2 PLC Technical Analysis
Positive
1225.00
Price Trends
1236.24
Positive
1203.47
Positive
1270.42
Positive
Market Momentum
54.53
Negative
73.66
Negative
66.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JET2, the sentiment is Positive. The current price of 1225 is below the 20-day moving average (MA) of 1341.55, below the 50-day MA of 1236.24, and below the 200-day MA of 1270.42, indicating a bullish trend. The MACD of 54.53 indicates Negative momentum. The RSI at 73.66 is Negative, neither overbought nor oversold. The STOCH value of 66.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:JET2.
Jet2 PLC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £2.73B | 7.12 | 24.73% | 1.18% | 4.30% | 2.05% | |
73 Outperform | £4.03B | 9.54 | 15.14% | 1.21% | 10.51% | -9.26% | |
68 Neutral | £1.59B | 13.00 | 20.47% | 3.34% | 6.79% | -20.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £3.89B | 19.16 | 6.73% | 3.80% | -0.06% | -13.45% | |
50 Neutral | £1.47B | -52.85 | -65.76% | 2.50% | 4.58% | -24.15% | |
44 Neutral | £620.41M | -4.05 | -90.46% | 4.48% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
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Jet2 PLC Corporate Events
Business Operations and StrategyStock Buyback
Jet2 Launches £250 Million Share Buyback Programme
Positive
Jul 8, 2026
Jet2 plc has launched a share buyback programme of up to £250 million, with an initial tranche of up to £125 million starting immediately and expected to run until 31 December 2026. Jefferies International will execute the first tranche ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Jet2 Delivers Record Passenger Volumes and Unveils £250m Buyback Amid Gatwick Expansion
Positive
Jul 8, 2026
Jet2 plc reported preliminary results for the year to 31 March 2026 showing record flown passenger numbers and a 4% rise in revenue to £7.48bn, with operating profit remaining resilient at £439.6m despite £61m of combined start-up a...
Business Operations and StrategyRegulatory Filings and Compliance
Jet2 Updates Total Voting Rights as Leisure Travel Operations Expand
Positive
Jun 1, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to derive most of its revenue and passenger volumes from ATOL-protected package holidays across Mediterranean, Canary Islands and European leisure cities, supported ...
Stock Buyback
Jet2 Completes £100 Million Share Buyback, Trimming Share Count
Positive
May 5, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, derives the bulk of its revenue from ATOL-protected package holidays to Mediterranean, Canary Islands and European leisure destinations, with flights operated from 14 UK airpo...
Regulatory Filings and Compliance
Jet2 Confirms Total Voting Rights and Share Capital Structure
Neutral
May 1, 2026
Jet2 plc has confirmed its total voting rights as at 30 April 2026, reporting 190,919,832 ordinary shares in issue, each carrying one vote, and no shares held in treasury. This disclosure provides the reference figure shareholders must use to asse...
Business Operations and StrategyFinancial Disclosures
Jet2 posts solid FY26 performance as Gatwick launch fuels growth and summer capacity expansion
Positive
Apr 29, 2026
Jet2 plc, the UK’s leading provider of package holidays and third-largest airline, continues to focus on its integrated leisure travel model built around Jet2holidays and Jet2.com, operating from 14 UK bases including the newly added London ...
Business Operations and StrategyStock Buyback
Jet2 Continues £100m Buyback as It Prepares New London Gatwick Base
Positive
Apr 28, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to derive the bulk of its revenue from ATOL-protected package holidays to Mediterranean, Canary Islands and European leisure destinations, with more than two-thirds ...
Stock BuybackRegulatory Filings and Compliance
Jet2 Advances £100m Share Buyback With Latest Share Cancellations
Positive
Apr 21, 2026
Jet2 plc has continued its previously announced share buyback programme, repurchasing 254,776 ordinary shares between 14 and 20 April 2026 from Jefferies International. The company plans to cancel these shares, reducing its share count to 191,933,...
Stock BuybackRegulatory Filings and Compliance
Jet2 Cuts Share Count with Latest Tranche of £100m Buyback
Positive
Apr 14, 2026
Jet2 plc has continued to execute its up to £100 million share buyback, repurchasing 234,580 ordinary shares between 7 and 13 April 2026 from Jefferies International Limited under shareholder authority granted in 2025. The company plans to ca...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.