Jet2 has reported prices softening for this summer as it announced a jump in profits.
The company’s 2024 preliminary results revealed a 43% increase in group pre-tax profit to £529.5 million for the year, up from £371m in 2023.
Total flown passenger numbers increased to 17.72m from 16.22m in 2023, with package customers making up 68.3%. Package holiday bookings increased 15%, with the average package price up 11% to £830 in the 12 months to 31 March 2024.
Capacity for summer 2024 is 12.3% higher than summer 2023, at 17.16m seats, and the number of packages already booked is up 7%. Flight-only passengers are up 16%.
Jet2 said passengers are currently booking much closer to departure and ‘therefore, pricing for our flight-only and package holiday products must remain attractive’’, adding ‘summer 2024 pricing to date for both products is showing a modest increase’.
It added package holidays still remain ‘high on the priority list for our customers, even during uncertain economic times’.
Jet2 paid commission to travel agents of £166.9m (2023: £142m), in line with the increased volume of package holiday customers and the increase in average package holiday price and CEO Steve Heapy reiterated travel agents remain ‘an important distribution channel’.
The number of package holiday customers booking via the Jet2 app increased 21 percentage points since 2020 to 24%.
Steve said: “Passengers are currently booking much closer to departure and therefore, pricing for our flight-only and package holiday products must remain attractive. Summer 2024 pricing to date for both products is showing a modest increase, helping to offset in part previously announced input cost increases.
“As ever, we remain mindful of the current macro-economic and geo-political environments and how these may influence future consumer spending patterns. However, we continue to believe that the end-to-end package holiday is a resilient and popular product which remains high on the priority list for our customers, even during uncertain economic times.”
Jet2 staff have been awarded a 5.5% pay increase for the year ending 31 March 2025, on top of the 9% they got in the previous year.
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The company’s 2024 preliminary results revealed a 43% increase in group pre-tax profit to £529.5 million for the year, up from £371m in 2023.
Total flown passenger numbers increased to 17.72m from 16.22m in 2023, with package customers making up 68.3%. Package holiday bookings increased 15%, with the average package price up 11% to £830 in the 12 months to 31 March 2024.
Capacity for summer 2024 is 12.3% higher than summer 2023, at 17.16m seats, and the number of packages already booked is up 7%. Flight-only passengers are up 16%.
Jet2 said passengers are currently booking much closer to departure and ‘therefore, pricing for our flight-only and package holiday products must remain attractive’’, adding ‘summer 2024 pricing to date for both products is showing a modest increase’.
It added package holidays still remain ‘high on the priority list for our customers, even during uncertain economic times’.
Jet2 paid commission to travel agents of £166.9m (2023: £142m), in line with the increased volume of package holiday customers and the increase in average package holiday price and CEO Steve Heapy reiterated travel agents remain ‘an important distribution channel’.
The number of package holiday customers booking via the Jet2 app increased 21 percentage points since 2020 to 24%.
Steve said: “Passengers are currently booking much closer to departure and therefore, pricing for our flight-only and package holiday products must remain attractive. Summer 2024 pricing to date for both products is showing a modest increase, helping to offset in part previously announced input cost increases.
“As ever, we remain mindful of the current macro-economic and geo-political environments and how these may influence future consumer spending patterns. However, we continue to believe that the end-to-end package holiday is a resilient and popular product which remains high on the priority list for our customers, even during uncertain economic times.”
Jet2 staff have been awarded a 5.5% pay increase for the year ending 31 March 2025, on top of the 9% they got in the previous year.
The post Jet2 reports increase in package sales but customers are booking much later appeared first on Travel Gossip.
Continue reading...
