Full Year 2025 Jet2 PLC Earnings Call Transcript
Key Points
- Jet2 PLC (DRTGF) reported record passenger numbers, revenue, and profitability, with nearly 20 million passengers, a 12% increase, and revenue of GBP 7.2 billion, a 15% increase.
- The company has made significant investments in expanding its operations, opening new bases in Liverpool, Bournemouth, and Luton, all performing to expectations.
- Jet2 PLC (DRTGF) maintains a strong financial position with GBP 1.1 billion of its own cash and a 22% reduction in its debt pile.
- The company has a high customer loyalty rate, with a 61% repeat booking rate and over 7 million myJet2 members, contributing to a strong net promoter score in the mid-60s.
- Jet2 PLC (DRTGF) is committed to sustainability, with new aircraft like the A321neo contributing to reduced carbon intensity and noise levels, aligning with their climate transition goals.
- The company faces challenges with a late booking market, which has persisted for about a year, impacting the predictability of revenue streams.
- Flight-only ticket yield per passenger softened by 2%, reflecting a more promotional environment, despite an 18% increase in flight-only passengers.
- Jet2 PLC (DRTGF) is targeting less affluent and younger demographics, which may lead to lower revenue per package holiday and potentially lower profit per customer.
- The company is experiencing competitive pressure in the UK market, particularly in the flight-only segment, which has seen sharper pricing in recent weeks.
- There are potential delays in the delivery of new aircraft due to supply chain challenges, although the company is managing these within its fleet operations.
Good morning, everyone. Welcome to our Investment Analyst Conference Call, our first audio cast. I'm Steve Heapy, CEO of Jet2 plc; and I'm joined today by Gary Brown, our group CFO.
We're going to take you through the highlights of the results and then talk about the financial performance of the Group and then give you an update on our strategy, and then we'll open up the floor to questions from people both in the room and remotely.
So, record passenger numbers, record revenue, and record profitability, another year of record results, very happy and very proud of them.
Passengers, nearly 20 million at 12% up. Revenue GBP7.2 billion, that was 15% up, and profits, record profits again, 11% up, Group PBT pre-FX and tax GBP578 million.
We've made a lot of investments during the year. We opened a Liverpool base last year, four aircraft, that's increased to five aircraft for this summer, performing well. We've launched Bournemouth middle of February this year, and we launched Luton on the April 1, so that's three new
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