• Forward bookings strengthened throughout December and January
• The board now expects to exceed average market expectations
• Jet2 shares up 3%

Jet2 announced its trading update on Thursday, which saw forward bookings strengthen and the group upgrade its annual profit guidance.

The low-cost leisure airline reported winter 2022/23 forward bookings had continued to strengthen throughout December and January. Additionally, average load factors are now slightly ahead of Winter 2018/19 at the same point and package holiday customers has remained consistent.

Several positive indicators have led the board to now exceed current average market expectations and report a group profit before tax for the year ending 31 March of between £370m and £385m.

Meanwhile, for FY24 the airline has said on sale seat capacity for summer 2023 is currently 6.6% higher than summer 2022. Forward bookings to date are encouraging and load factors are currently 1.0ppt ahead of the prior summer.

However, Jet2 still faces pressures from input costs including fuel, a strengthened US dollar and wage increases. Therefore, its margins will still come under some pressure as the macroeconomic environment continues to face its challenges.

Jet2 shares are currently trading 3% higher this morning.

Jet2 will post its pre-close trading update in mid-April and will announce its preliminary results on the 6 July.