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Jet2 PLC
(LSE:JET2)
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Rating:79Outperform
Price Target:
1,824.00 p
▲(25.45% 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
Integrated travel model and demand growth
Jet2’s airline and tour-operator integration supports capacity utilisation and customer capture. Continued passenger and revenue growth, alongside strong package volumes, indicates durable demand and a scalable model.
Negative Factors
Persistent supplier and operating cost inflation
Costs are rising faster than several revenue measures, particularly accommodation and airport charges. Because these inputs are material and partly regulatory or supplier-driven, sustained inflation could keep margins under pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated travel model and demand growth
Jet2’s airline and tour-operator integration supports capacity utilisation and customer capture. Continued passenger and revenue growth, alongside strong package volumes, indicates durable demand and a scalable model.
Read all positive factors
Jet2 PLC (JET2) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.86B
Dividend Yield1.05%
Average Volume (3M)519.03K
Price to Earnings (P/E)7.4
Beta (1Y)0.97
Revenue Growth4.30%
EPS Growth-4.51%
CountryUK
Employees15,795
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding189,097,440
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
£1,727.67Price Target Upside18.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.31
Revenue Forecast (FY)£8.01B
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 18, 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
1454.00
Price Trends
1427.12
Positive
1290.14
Positive
1290.95
Positive
Market Momentum
48.62
Positive
64.82
Neutral
59.22
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 1454 is below the 20-day moving average (MA) of 1529.25, above the 50-day MA of 1427.12, and above the 200-day MA of 1290.95, indicating a bullish trend. The MACD of 48.62 indicates Positive momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 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 | £2.86B | 7.43 | 19.92% | 1.14% | 4.30% | -4.51% | |
73 Outperform | £1.86B | 13.94 | 20.97% | 4.36% | 6.89% | -9.02% | |
73 Outperform | £4.44B | 10.24 | 15.14% | 1.35% | 10.51% | -9.26% | |
68 Neutral | £4.15B | 20.04 | 6.73% | 3.98% | -0.06% | -13.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £1.61B | -56.05 | -65.76% | 2.30% | 4.58% | -24.15% | |
44 Neutral | £645.37M | -4.12 | -90.46% | 4.07% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
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Jet2 PLC Corporate Events
Business Operations and StrategyStock Buyback
Jet2 cancels 412,000 shares after latest buyback tranche
Positive
Aug 17, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, has been expanding its package holiday-led model, with nearly two-thirds of its 2026 financial year passengers taking end-to-end packages from a network of 14 UK airport bases...
Business Operations and StrategyStock Buyback
Jet2 cancels 295,000 shares in first tranche of buyback programme
Positive
Aug 10, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to leverage its strong position in the package holidays and scheduled holiday flights market, serving popular sun and city destinations from 14 UK bases. Its busines...
DividendsFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Jet2 Publishes 2026 Annual Report and Confirms Final Dividend Timetable
Positive
Aug 3, 2026
Jet2 plc has published its Annual Report Accounts for the year ended 31 March 2026 and released the notice and proxy materials for its Annual General Meeting, scheduled to take place on 3 September 2026 at the company’s Leeds headquarters, ...
Business Operations and StrategyRegulatory Filings and Compliance
Jet2 Updates Share Capital and Voting Rights as Leisure Travel Business Expands
Positive
Aug 3, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to capitalise on strong demand for ATOL-protected package holidays across key sun and city destinations, with the majority of its revenue and passengers tied to end-...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Launches First Tranche of Share Buyback, Cancels 301,669 Shares
Positive
Aug 3, 2026
Jet2 plc has executed the first tranche of its recently announced share buyback programme, repurchasing 301,669 ordinary shares between 27 and 30 July 2026 through Jefferies International. The company intends to cancel these shares, reducing its s...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Reduces Share Count with First Tranche of Buyback Programme
Positive
Jul 27, 2026
Jet2 plc, the UK leisure travel group behind package holiday provider Jet2holidays and airline Jet2.com, has reinforced its position in the holiday travel sector by leveraging a broad network of 14 UK airport bases and a high share of customers op...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Jet2 awards new share options to top executives under incentive plans
Positive
Jul 23, 2026
Jet2 plc has strengthened its executive incentive structure by granting share options to Chief Executive Officer Steve Heapy and Group Chief Financial Officer Gary Brown under its Share Reward Plan and Senior Executive Incentive (Deferred Award) P...
Business Operations and StrategyRegulatory Filings and Compliance
Jet2 Executives Boost Shareholdings After Exercising Option Awards
Positive
Jul 20, 2026
Jet2 plc has disclosed that Chief Executive Officer Steve Heapy and Group Chief Financial Officer Gary Brown have exercised share options over a combined 185,181 ordinary shares under the company’s 2023 Share Reward Plan and 2023 Senior Exec...
Business Operations and StrategyStock Buyback
Jet2 Executes First Tranche of Share Buyback, Cuts Share Count
Positive
Jul 20, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to leverage its strong position in package holidays and scheduled holiday flights from 14 UK bases, including Manchester and London Gatwick, to Mediterranean, Canary...
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 ...
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.