Jet2.com post impressive financial results

Profit before taxation reduced by 14% to £90.1m (2016: £104.2m). This result includes considerable investment to launch our two new Jet2.com operating bases at Birmingham and London Stansted Airports and also includes a £10.9m charge for foreign exchange revaluation losses (2016: £1.3m). Before accounting for these revaluation losses, underlying profit before taxation reduced by 4% to £101.0m (2016: £105.5m). Basic earnings per share fell by 14% to 51.80p (2016: 60.22p).

In consideration of these results, the Board is recommending a final dividend of 3.897p per share (2016: 3.100p), which will bring the total proposed dividend to 5.272p per share for the year (2016: 4.000p), an increase of 32%. This final dividend is subject to shareholders’ approval at the Company’s Annual General Meeting on 7 September 2017 and will be payable on 27 October 2017 to shareholders on the register at the close of business on 22 September 2017.

The profit performance in the year primarily reflects the continuing investment in, and success of, the Group’s Leisure Travel business, which combines both Jet2.com, our leisure airline and Jet2holidays, our package holidays provider.

Jet2.com flew a total of 7.10m passengers (one-way passenger sectors) (2016: 6.07m), to and from popular sun, city and ski destinations during the year, an increase of 17%. Demand for our real package holidays continued to grow as Jet2holidays took 1.73m customers on package holidays (2016: 1.22m), an increase of 42%, representing 49% of overall flown passengers (2016: 40%). Our important flight-only product was enjoyed by 3.64m passengers in the year (2016: 3.63m). Average airline ticket yields at £86.65 (2016: £91.11) and average load factors at 91.5% (2016: 92.5%) were respectively 5% and one percentage point lower than those achieved in the prior year. The average price of a package holiday was £617 (2016: £616). As a result, revenue in our Leisure Travel business increased by 24% to £1,565.8m (2016: £1,261.4m).

In July and September 2016, we were delighted to announce Birmingham and London Stansted Airports as our 8th and 9th UK operating bases. Operations at both commenced on 30 March 2017, providing customers with a combined 58 new routes to Mediterranean and Canary Island holiday destinations. We believe both bases have great potential for our holiday business, further strengthening our position in the Midlands and enabling us to serve, for the first time, customers in North & East London and the East of England.