Jet2 benefits from marketing push, announces £100 million share buyback
British low-cost airline Jet2 (JET2.L) reported record passenger numbers over the summer as its marketing efforts boost brand recognition. The Leeds-based company saw a 2% rise in half-year operating profit, despite higher costs and investments in new bases at Bournemouth and London Luton. It also announced a £100 million ($131 million) share buyback, sending its shares up 5% on Wednesday.
CEO Steve Heapy highlighted the impact of the airline’s “Nothing beats a Jet2holiday” campaign, featuring Jess Glynne’s track “Hold My Hand,” as a key driver of growth. Jet2 carried a record 14.1 million passengers in the six months to September 30, a 6% increase from the previous year. Membership in its myJet2 bookings and loyalty portal jumped 62% to over 8.4 million members, News.Az reports, citing Reuters.
The airline plans to begin flights from London Gatwick from March, though it expects losses in the second half of the year due to promotional and start-up costs, as well as increased aircraft and marketing expenses in preparation for the summer season. Annual operating profit is still expected to meet market expectations.
Heapy expressed concerns about the upcoming UK budget, urging the government not to target the airline and holiday sector with additional taxes. “Any extra taxation will inevitably be passed on to customers, and that will put prices up,” he said.
Winter seat capacity is up 7.7% year-on-year to 5.5 million, though late bookings continue to challenge the group.
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