Group financial highlights Half year ended
Unaudited Half year ended
Revenue
Operating profit / (loss)
Profit / (loss) before FX revaluation and
taxation*
Profit / (loss) before taxation
Profit / (loss) for the period after taxation
Basic earnings per share 165.9p (76.2p) 318% 187.0p
Interim dividend per share 3.0p - 100% 3.0p
Further information on the calculation of this measure can be found in Note 4.
Despite a difficult return to normal operations, Group profit before foreiign exchange revaluation and taxation increased to
Total profit for the period after taxation was
Seat capacity increased 14% against Summer 2019 and buoyant customer demand resulted in the business achieving an average load factor of 90.7% (2019: 93.1%). Higher margin Package Holiday customers mix of total departing passengers was 65.9%, up 13.1ppts against Summer 2019 (2019: 52.8%).
Flight-only ticket yield per passenger sector at
Our operations were directly impacted by the broader disruption seen across the aviation sector and its supply chains in mid-summer as was widely reported in the media, which has resulted in significant delay and compensation costs in excess of
Overall liquidity improved significantly with a total cash balance (including money market deposits) at the half year end of
In
With Winter 2022/23 bookings encouraging and pricing remaining robust, but recognising that the important post-Christmas booking period is still to come, we are presently on track to exceed current average market expectations for Group profit before FX revaluation and taxation for the year ending
Looking ahead, the Group faces input cost pressures including fuel, carbon, a strengthened US dollar and wage increases, plus investment to ensure our Colleagues can thrive and have a balanced lifestyle, further underpinning our operational resilience. This leads us to conclude that margins may come under some pressure.
The Right Product for Tougher Times - our well-established truly variable duration holidays and wide ranging product portfolio will provide customers with plenty of choice and flexibility to be able to tailor their holiday plans to meet their individual budgets. As a result, we remain confident that our Customers' eagerness to take their much valued and anticipated holidays will remain high.
Chairman's Statement
I am pleased to report on the Group's trading for the half year ended
Results for the half year
Despite a difficult return to normal operations, primarily due to the lack of planning and preparedness of many airports and associated suppliers, and having absorbed substantial associated disruption costs, Group profit before foreign exchange revaluation and taxation increased to
Our
The business made considerable investment well ahead of Summer 2022, retaining over 8,000 loyal colleagues throughout the pandemic and significantly topping up the Coronavirus Job Retention Scheme funding on a sliding scale basis up to 100% of salary for the lowest paid, recruiting and training seasonal colleagues in good time, making substantial marketing investments, plus early and meaningful salary increases for all colleagues. This left us very well prepared for our summer operation and also enabled
For the reporting period, seat capacity increased 14% against Summer 2019 and buoyant customer demand resulted in the business achieving an average load factor of 90.7% (2019: 93.1%), with package holiday customers displaying a materially higher mix of the total departing passengers at 65.9%, up 13.1ppts against Summer 2019 (2019: 52.8%).
Despite our Colleagues working incredibly hard and consistently going the extra mile to take our Customers on their long-awaited holidays, unfortunately some customers still faced frustrating delays as our operations were directly impacted by the broader disruption seen across the aviation sector and its supply chains as was widely reported in the media. Regrettably, this resulted in
In addition, our inflight retail financial performance was weaker than expected, due to product supply chain issues early in the summer season, plus poor onboard product availability caused by resource constraints at our third party inflight retail provider.
Given these very challenging circumstances, the Board is hugely appreciative of all our Colleagues' tremendous efforts and support over recent months.
As is typical for the business, losses are to be expected in the second half of the financial year, as we continue to invest in: additional aircraft; marketing to ensure we optimise our pre-Summer 2023 forward booking position; retaining increasing numbers of colleagues through the winter months to ensure maximum operational resilience ahead of next summer; and attracting new colleagues in readiness for further expansion of our exciting package holiday and flight-only offeringsfor Summer 2023, in line with our planned growth targets.
Interim Dividend
Basic earnings per share increased to 165.9p (2021: (76.2p)) and in view of the current full year outlook, the Board has decided to pay an interim dividend of 3.0p per share (2021: GBPnil). The dividend will be paid on
Sustainability
The Group continued to implement its Sustainability Strategy with the vision to become 'the leading brand in sustainable air travel and package holidays'. All of our airline emissions not already covered by mandatory carbon pricing mechanisms, namely the
Post reporting date events
The strength of our recovery post Covid reinforces our view that we have a great future in the leisure travel industry. Consequently, we were delighted to announce in
These latest firm ordered aircraft deliveries stretch over three years until 2031, and at base price represent a total value of approximately
The Group now has 98 firm ordered Airbus A320/A321 neo aircraft, which could eventually extend up to 146 aircraft and critically has certainty of supply well into the next decade. The Company will retain flexibility in determining the most favourable method of financing the aircraft, which will be through a combination of internal resources and debt.
Outlook - The Right Product for Tougher Times: See full release at: https://www.jet2.com/news/2022/11/Jet2_plc_announces_Interim_Results_for_2022
(C) 2022 Electronic News Publishing, source