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Jet2 Plc (GB:JET2)
:JET2
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Jet2 PLC (JET2) AI Stock Analysis

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GB:JET2

Jet2 PLC

(OTC:JET2)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
1,529.00p
▲(12.51% Upside)
Jet2 PLC's strong financial performance, strategic growth initiatives, and undervaluation relative to peers are significant strengths. The company's robust earnings call and proactive corporate events, such as the share buyback program, further enhance its investment appeal. However, concerns about cash flow and rising operational costs slightly temper the overall outlook.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business strategies, contributing to long-term financial stability.
Fleet Renewal
Fleet renewal with modern aircraft enhances operational efficiency and sustainability, supporting long-term competitive advantage.
Strong Financial Position
A strong cash position provides financial resilience and flexibility for strategic investments and growth initiatives.
Negative Factors
Declining Free Cash Flow
Declining free cash flow may limit the company's ability to fund new projects and respond to market changes, impacting future growth.
Rising Operational Costs
Increasing operational costs can pressure margins and profitability, challenging the company's ability to maintain competitive pricing.
Start-Up Costs for Gatwick Operations
Significant start-up costs for new operations can strain financial resources and delay profitability, impacting short-term financial performance.

Jet2 PLC (JET2) vs. iShares MSCI United Kingdom ETF (EWC)

Jet2 PLC Business Overview & Revenue Model

Company DescriptionJet2 plc, together with its subsidiaries, engages in the leisure travel business in the United Kingdom. The company operates scheduled holiday flights to leisure destinations in the Mediterranean, the Canary Islands, and European Leisure Cities. It is also involved in the package holiday and non-ticket retail activities, as well as passenger and charter aircraft operations. The company was formerly known as Dart Group PLC and changed its name to Jet2 plc in September 2020. Jet2 plc was founded in 1971 and is based in Leeds, the United Kingdom.
How the Company Makes MoneyJet2 PLC generates revenue through multiple streams, primarily from ticket sales for its airline services and holiday package sales. The airline segment earns money by selling flight tickets directly to consumers and through travel agents, while the holiday division profits by offering all-inclusive packages that combine flights, accommodations, and additional services. Ancillary revenue also plays a significant role, with income derived from extras such as checked baggage fees, seat selection, and in-flight services. Partnerships with hotels, car rental companies, and local attractions further enhance revenue, allowing Jet2 to offer competitive package deals. Seasonal demand and a strong focus on customer satisfaction contribute to the company's earnings, as they enable Jet2 to capture a loyal customer base and encourage repeat business.

Jet2 PLC Earnings Call Summary

Earnings Call Date:Nov 19, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Jul 02, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with record passenger numbers, increased profitability, and strategic growth expansions at Gatwick Airport. Despite facing challenges such as declining flight-only revenue and rising operational costs, the company's robust financial position and strategic investments in fleet renewal and customer service enhancements provide a positive outlook.
Q2-2026 Updates
Positive Updates
Record Passenger Numbers and Profitability
Passenger numbers increased by 6%, achieving record figures across all key metrics. Group profit before FX revaluations rose by 1%, and earnings per share increased by 8% following a GBP 250 million share buyback program.
Strong Financial Performance and Liquidity
Jet2 maintains a strong balance sheet with GBP 3.4 billion in cash, which supports fleet investment and financial resilience. Operating profit more than doubled, up 118% to GBP 447 million since 2019.
Gatwick Airport Expansion
Jet2 launched operations at Gatwick Airport, offering flights to 29 destinations. The new base is expected to be profitable by financial year '29, with significant growth potential following Gatwick's expansion plans.
Fleet Renewal and Sustainability
The fleet renewal program is on track, with Jet2 operating 23 Airbus A321neo aircraft, representing 17% of the total fleet. The fleet is expected to increase to 31 aircraft by Summer '26, improving sustainability metrics.
Increased Package Holiday Revenue
Package holidays now account for 66.5% of total passengers, up 17 percentage points since 2019, contributing over 80% of total revenue.
Negative Updates
Flight-Only Revenue Decline
Average ticket prices for flight-only decreased by 7% to GBP 122 due to increased promotional offers in a competitive market.
Rising Operational Costs
Operational costs increased by 4.8%, driven by 7% higher hotel accommodation costs and a 10% rise in landing, navigation, and third-party handling costs.
Start-Up Costs for Gatwick Operations
Jet2 anticipates GBP 10 million to GBP 15 million in start-up costs for the new Gatwick base, with initial operating losses expected as the base becomes established.
Company Guidance
The call provided comprehensive guidance on Jet2's financial and operational performance, highlighting record passenger numbers, revenue, and profitability, with a 6% increase in passenger numbers and an 8% rise in earnings per share following a £250 million share buyback. The company announced an additional £100 million share buyback, emphasizing its strong balance sheet with £3.4 billion in cash. Jet2 operated 23 Airbus A321neo aircraft in summer 2025, representing 17% of its fleet, and plans to increase this to 31 aircraft by summer 2026, reaching 22% of the fleet. The company also discussed its strategic expansion at Gatwick Airport, targeting profitability by FY '29, with plans to operate six aircraft initially, and highlighted its investment in digital infrastructure and sustainability targets. The CFO noted significant growth since 2019, with operating profit up 118% to £447 million and a return on capital employed averaging 17% post-pandemic. Jet2's flexible, integrated model has adapted to consumer trends, with a 16% rise in flight-only bookings and a 4% increase in non-ticket revenue per passenger. The company remains confident in its growth prospects, supported by strategic capital allocation and a robust cash-generative business model.

Jet2 PLC Financial Statement Overview

Summary
Jet2 PLC demonstrates strong revenue growth and profitability, with efficient operations reflected in healthy EBIT and EBITDA margins. The balance sheet shows improved leverage and strong return on equity, though debt levels require careful management. Cash flow performance is a concern due to declining free cash flow, which may affect future financial flexibility.
Income Statement
78
Positive
Jet2 PLC has shown a consistent revenue growth trajectory with a 3.46% increase in the latest year. The gross profit margin has slightly decreased to 12.53%, and the net profit margin stands at 6.23%. The EBIT and EBITDA margins are healthy at 9.08% and 13.01%, respectively, indicating strong operational efficiency. However, the slight decline in gross profit margin suggests potential cost pressures.
Balance Sheet
72
Positive
The company's debt-to-equity ratio has improved to 0.71, indicating a more balanced leverage position compared to previous years. The return on equity remains robust at 27.72%, reflecting effective use of equity to generate profits. The equity ratio is stable, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.
Cash Flow
65
Positive
Jet2 PLC's free cash flow has decreased by 9.55%, which is a concern. The operating cash flow to net income ratio is 0.34, and the free cash flow to net income ratio is 0.62, indicating moderate cash flow efficiency. The decline in free cash flow growth suggests potential challenges in cash generation, which could impact future investments.
BreakdownTTMDec 2025Dec 2023Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.17B7.17B5.03B6.26B1.23B395.40M
Gross Profit1.05B898.70M707.70M841.20M-147.90M-264.90M
EBITDA742.70M933.30M579.20M849.20M-172.00M-165.70M
Net Income446.80M446.80M290.80M399.20M-315.40M-271.20M
Balance Sheet
Total Assets5.91B5.91B4.53B5.57B3.99B2.87B
Cash, Cash Equivalents and Short-Term Investments3.15B3.15B2.62B3.18B2.23B1.38B
Total Debt1.14B1.14B1.38B1.46B1.57B1.32B
Total Liabilities4.30B4.30B3.51B4.16B3.10B1.91B
Stockholders Equity1.61B1.61B1.01B1.41B896.60M964.20M
Cash Flow
Free Cash Flow663.50M659.10M755.50M685.50M642.60M-872.20M
Operating Cash Flow1.06B1.06B952.10M1.09B751.00M-834.80M
Investing Cash Flow-613.90M-613.90M-675.80M-482.30M-1.29B41.10M
Financing Cash Flow-696.60M-696.60M-370.30M-124.60M201.00M797.40M

Jet2 PLC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1359.00
Price Trends
50DMA
1355.24
Positive
100DMA
1451.80
Negative
200DMA
1507.66
Negative
Market Momentum
MACD
3.54
Positive
RSI
50.54
Neutral
STOCH
21.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JET2, the sentiment is Neutral. The current price of 1359 is above the 20-day moving average (MA) of 1351.75, above the 50-day MA of 1355.24, and below the 200-day MA of 1507.66, indicating a neutral trend. The MACD of 3.54 indicates Positive momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 21.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:JET2.

Jet2 PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£1.43B8.526.58%3.87%18.31%
75
Outperform
£2.56B5.9423.98%1.21%7.17%-2.22%
71
Outperform
£1.39B13.215.01%1.13%2.71%-34.19%
66
Neutral
£4.79B19.587.52%4.04%-2.12%8.95%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£314.09M22.8014.50%1.44%-5.30%-30.17%
55
Neutral
£812.13M126.364.02%4.46%-89.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:JET2
Jet2 PLC
1,359.00
-257.50
-15.93%
GB:MAB
Mitchells & Butlers
264.00
17.50
7.10%
GB:OTB
On The Beach
215.00
-22.14
-9.34%
GB:SMWH
WH Smith
694.50
-513.15
-42.49%
GB:WTB
Whitbread
2,401.00
-414.46
-14.72%
GB:CURY
Currys plc
132.60
52.59
65.73%

Jet2 PLC Corporate Events

Stock Buyback
Jet2 PLC Advances Share Buyback Program with Recent Purchase
Positive
Dec 5, 2025

Jet2 PLC announced the purchase of 59,831 ordinary shares as part of its £100 million share buyback program. This move is intended to enhance shareholder value by reducing the number of shares in circulation, potentially increasing earnings per share and signaling confidence in the company’s future prospects.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Executes Share Buyback to Enhance Shareholder Value
Positive
Dec 4, 2025

Jet2 PLC has announced the purchase of 63,967 ordinary shares as part of its £100 million share buyback program, which was authorized by shareholders at the company’s annual general meeting. This move is part of Jet2’s strategy to enhance shareholder value and optimize its capital structure, potentially impacting its market positioning and investor relations positively.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with Recent Purchase
Positive
Dec 3, 2025

Jet2 PLC has announced the purchase of 57,788 ordinary shares as part of its £100 million share buyback program, which was authorized by shareholders at the company’s Annual General Meeting. This move is part of Jet2’s strategy to enhance shareholder value and reflects the company’s confidence in its financial stability and future prospects.

Stock Buyback
Jet2 PLC Advances £100 Million Share Buyback Initiative
Positive
Dec 2, 2025

Jet2 PLC has announced the purchase of 57,788 ordinary shares as part of its £100 million share buyback program. This move, approved by shareholders, aims to enhance shareholder value by reducing the number of outstanding shares, potentially increasing earnings per share and demonstrating confidence in the company’s financial health.

Stock BuybackBusiness Operations and Strategy
Jet2 plc Launches £100 Million Share Buyback Programme
Positive
Nov 19, 2025

Jet2 plc has announced the launch of a £100 million share buyback programme, with trading set to begin on 1 December 2025 and conclude by 30 June 2026. The buyback is part of the company’s strategy to manage its capital structure and is expected to enhance shareholder value by reducing the number of outstanding shares. This move reflects Jet2’s confidence in its financial health and future prospects, potentially strengthening its position in the leisure travel industry.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Jet2 PLC Reports Record Growth and Strategic Expansion
Positive
Nov 19, 2025

Jet2 PLC has reported record financial performance for the first half of 2025, driven by increased passenger numbers and strategic expansions, including a new base at London Gatwick. The company has seen a 5% revenue growth to £5,342.2m and an 8% increase in basic earnings per share. Jet2 continues to focus on growth with new operating bases and aircraft, while also announcing a £100m share buyback, reflecting confidence in its future prospects. The company’s ability to adapt to changing consumer behavior and its strong financial resilience are key factors in its continued success.

Product-Related AnnouncementsBusiness Operations and Strategy
Jet2 Expands Operations with New Base at London Gatwick
Positive
Nov 12, 2025

Jet2 PLC has announced the launch of a new base at London Gatwick Airport, marking a significant expansion in its operations. This strategic move will enable Jet2 to tap into a catchment area of 15 million potential customers, furthering its growth strategy and enhancing its presence in the South of England. The company plans to base five Airbus A321neo aircraft at Gatwick and expects the operation to become profitable by FY29. This development is seen as a transformational step in Jet2’s market expansion, providing a strong foothold for future growth opportunities, including the potential for a second runway at Gatwick.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with New Purchase
Positive
Oct 2, 2025

Jet2 PLC has announced the purchase of 414,660 ordinary shares as part of its ongoing share buyback program. This move is part of the second tranche of the program, initially announced in April 2025, and reflects the company’s strategy to enhance shareholder value by reducing the number of shares in circulation.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with New Purchase
Positive
Oct 1, 2025

Jet2 PLC has announced the purchase of 451,538 ordinary shares as part of its ongoing share buyback program. This move is part of the second tranche of the program, which was initially announced in April 2025, and reflects the company’s strategy to enhance shareholder value by reducing the number of shares in circulation.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with Latest Purchase
Positive
Sep 30, 2025

Jet2 PLC has announced the purchase of 415,680 ordinary shares as part of its ongoing buyback program, which was approved by shareholders earlier this month. This move is part of the company’s strategy to enhance shareholder value by reducing the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s financial health.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with New Purchase
Positive
Sep 30, 2025

Jet2 PLC has announced the purchase of 415,680 ordinary shares as part of its ongoing share buyback program. This move, authorized by shareholders, is part of a strategy to enhance shareholder value and indicates the company’s robust financial health and commitment to returning value to its investors.

Stock Buyback
Jet2 PLC Advances Share Buyback Program with Significant Share Purchase
Positive
Sep 29, 2025

Jet2 PLC announced the purchase of 415,827 ordinary shares as part of its ongoing share buyback program. This move, approved by shareholders, aims to enhance shareholder value by reducing the number of shares in circulation, potentially increasing earnings per share and reflecting confidence in the company’s financial health.

Stock Buyback
Jet2 PLC Advances Share Buyback Program with Latest Purchase
Neutral
Sep 17, 2025

Jet2 PLC has announced the purchase of 333,146 ordinary shares as part of its ongoing share buyback program. This move, authorized by shareholders, is part of the second tranche of the program and involves the cancellation of the purchased shares, potentially impacting the company’s share value and market perception.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with New Share Purchase
Positive
Sep 16, 2025

Jet2 PLC has announced the purchase of 324,342 ordinary shares as part of its ongoing share buyback program. This move, approved by shareholders, is part of a strategy to enhance shareholder value by reducing the number of shares in circulation, potentially increasing earnings per share and consolidating the company’s market position.

Stock Buyback
Jet2 PLC Advances Share Buyback Program with Recent Purchase
Positive
Sep 15, 2025

Jet2 PLC has announced the purchase of 299,233 ordinary shares as part of its ongoing share buyback program, which was authorized by shareholders earlier this month. This strategic move is intended to enhance shareholder value by reducing the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s financial health.

Stock Buyback
Jet2 PLC Advances Share Buyback Program with New Purchase
Positive
Sep 11, 2025

Jet2 PLC has announced the purchase of 294,138 ordinary shares as part of its ongoing share buyback program, with the intention to cancel these shares. This move is part of the second tranche of the buyback program, which was approved by shareholders and aims to enhance shareholder value by reducing the number of shares in circulation.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Announces Share Buyback to Enhance Shareholder Value
Positive
Sep 10, 2025

Jet2 PLC has announced the purchase of 277,590 of its own ordinary shares as part of a buyback program authorized by shareholders. This move is part of the company’s strategy to enhance shareholder value and indicates a strong financial position, potentially impacting its market perception positively.

Stock BuybackBusiness Operations and Strategy
Jet2 PLC Advances Share Buyback Program with New Purchase
Positive
Sep 9, 2025

Jet2 PLC has announced the purchase of 202,274 ordinary shares as part of its ongoing share buyback program. This move, authorized by shareholders, is part of a strategy to enhance shareholder value by reducing the number of shares in circulation, which could potentially improve earnings per share and market perception.

Business Operations and Strategy
Jet2 plc Expands Employee Share Ownership with New Sharesave Scheme Options
Positive
Sep 8, 2025

Jet2 plc has announced the grant of options under its UK and International Sharesave Schemes, aimed at encouraging wider employee share ownership. The options, totaling 2,473,144 ordinary shares, were granted at an exercise price of £13.05 per share and can be exercised within six months of October 2028, subject to continued employment. This initiative reflects Jet2’s commitment to employee engagement and aligns with its strategic goals, potentially enhancing its market position by fostering a sense of ownership among its workforce.

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.Date of analysis: Dec 07, 2025