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Jet2 PLC
(LSE:JET2)
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Rating:75Outperform
Price Target:
1,591.00 p
â–²(2.45% Upside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by strong financial fundamentals (profitability recovery and significantly strengthened balance sheet) and supportive valuation (low P/E). Earnings call signals remain constructive with strong cash generation and shareholder returns, but notable cost and margin pressures plus mixed technical momentum temper the overall rating.
Positive Factors
Record growth and cash generation
Record passenger volumes and revenue, combined with substantial operating and free cash flow, demonstrate strong demand and internal funding capacity. This supports continued fleet investment, marketing, and shareholder returns while reducing reliance on external financing over the next several quarters.
Negative Factors
Persistent cost inflation
Cost growth is running ahead of revenue growth in several important areas, particularly accommodation and airport-related charges. Because these expenses represent a significant part of the operating base, continued inflation could constrain margins unless Jet2 secures better contracts, improves mix, or passes costs to customers.
Read all positive and negative factors
Positive Factors
Negative Factors
Record growth and cash generation
Record passenger volumes and revenue, combined with substantial operating and free cash flow, demonstrate strong demand and internal funding capacity. This supports continued fleet investment, marketing, and shareholder returns while reducing reliance on external financing over the next several quarters.
Read all positive factors
Jet2 PLC (JET2) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.49B
Dividend Yield1.21%
Average Volume (3M)467.97K
Price to Earnings (P/E)6.6
Beta (1Y)0.92
Revenue Growth4.30%
EPS Growth-4.51%
CountryUK
Employees15,795
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)2.12
Shares Outstanding185,202,680
10 Day Avg. Volume571,622
30 Day Avg. Volume467,972
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
£1,651.50Price Target Upside6.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.36
Revenue Forecast (FY)£8.00B
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...
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
Negative
1553.00
Price Trends
1450.40
Negative
1426.12
Negative
1302.40
Positive
Market Momentum
-5.14
Negative
43.45
Neutral
72.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:JET2, the sentiment is Negative. The current price of 1553 is above the 20-day moving average (MA) of 1417.70, above the 50-day MA of 1450.40, and above the 200-day MA of 1302.40, indicating a neutral trend. The MACD of -5.14 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 72.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £2.49B | 6.57 | 19.92% | 1.21% | 4.30% | -4.51% | |
71 Outperform | £2.34B | 17.81 | 20.97% | 3.00% | 6.89% | -9.02% | |
68 Neutral | £4.36B | 75.17 | 1.85% | 3.73% | 1.99% | -75.93% | |
66 Neutral | £4.23B | 7.83 | 18.67% | 1.34% | 2.06% | 14.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £1.34B | -49.12 | -65.76% | 2.45% | 4.58% | -24.15% | |
45 Neutral | £630.33M | -4.11 | -90.46% | 4.13% | -30.52% | -2064.92% |
* Consumer Cyclical Sector Average
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Jet2 PLC Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Cuts Share Count with First Tranche of Buyback Programme
Positive
Oct 5, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, has continued to strengthen its vertically integrated model, with more than 63% of passengers in the latest financial year opting for full package holidays rather than flights...
Regulatory Filings and Compliance
Jet2 plc Confirms Total Voting Rights and Share Capital Structure
Neutral
Oct 1, 2026
Jet2 plc has confirmed that, as at 30 September 2026, the company has 186,488,396 ordinary shares in issue, each carrying one voting right, giving a total of 186,488,396 voting rights. The company stated that no ordinary shares are held in treasur...
Stock BuybackRegulatory Filings and Compliance
Jet2 cancels 490,000 shares after first-tranche buyback
Positive
Sep 28, 2026
Jet2 plc has repurchased 490,336 ordinary shares between 21 and 25 September 2026 as part of the first tranche of a previously announced share buyback programme, with the shares acquired via Jefferies International across multiple trading venues a...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Cuts Share Count With First Tranche of Buyback Programme
Positive
Sep 21, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, has executed the first tranche of its previously announced share buyback programme, repurchasing 331,775 ordinary shares between 14 and 16 September 2026 through Jefferies Int...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Tightens Equity Base With First Tranche of Share Buyback
Positive
Sep 14, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and Jet2.com, continues to build on its position as a leading provider of package holidays and holiday-focused scheduled flights across Mediterranean, Canary Island and European leisure des...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 Cuts Share Count With First Tranche of Buyback
Positive
Sep 7, 2026
Jet2 plc has initiated the first tranche of its previously announced share buyback programme, purchasing 272,006 ordinary shares between 1 and 4 September 2026 through Jefferies International Limited. The company plans to cancel these shares, redu...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Jet2 shareholders back all AGM resolutions, reinforcing board and capital flexibility
Positive
Sep 3, 2026
Jet2 plc, the UK leisure travel group behind Jet2holidays and airline Jet2.com, has reinforced its position as a major player in the package holiday and short-haul flight market, operating from 14 UK bases and carrying a majority of its customers ...
Business Operations and StrategyDelistings and Listing ChangesFinancial Disclosures
Jet2 Boosts Capacity and Books Move to London Stock Exchange Main Market
Positive
Sep 3, 2026
Jet2 plc reports sustained demand for its leisure travel products, with Summer 2026 seat capacity up 7.6% year-on-year to 19.9 million and booked passengers up 8.8%, pushing average load factors 1.5 percentage points higher. The company’s Lo...
Business Operations and StrategyRegulatory Filings and Compliance
Jet2 Updates Total Voting Rights as Leisure Travel Business Expands
Neutral
Sep 1, 2026
Jet2 plc, a leading UK leisure travel group, operates both its Jet2holidays package tour business and Jet2.com airline across key sun and city break destinations in Europe, with package holidays forming the bulk of its passenger mix and revenue. T...
Stock BuybackRegulatory Filings and Compliance
Jet2 cancels 374,891 shares in first tranche of buyback programme
Positive
Sep 1, 2026
Jet2 plc, a UK leisure travel group combining its Jet2holidays tour operator and Jet2.com airline, focuses on ATOL-protected package holidays and scheduled holiday flights to Mediterranean and European destinations. The company serves customers fr...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Jet2 cancels 392,867 shares after first tranche of buyback
Positive
Aug 24, 2026
Jet2 plc has repurchased 392,867 ordinary shares as part of the first tranche of a previously announced share buyback programme, acquiring the stock from Jefferies International between 17 and 21 August 2026. The leisure travel group plans to canc...
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...
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.