ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

JET2.GB JET2 PLC

1,444.50
3.00 (0.21%)
08:01:12 - Realtime Data
Share Name Share Symbol Market Type Share ISIN Share Description
JET2 PLC AQSE:JET2.GB Aquis Stock Exchange Ordinary Share GB00B1722W11
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  3.00 0.21% 1,444.50 1,277.00 1,612.00 1,450.50 1,439.50 1,450.50 0.00 08:01:12
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Jet2 PLC Final Results (1034F)

06/07/2023 7:00am

UK Regulatory


JET2 (AQSE:JET2.GB)
Historical Stock Chart


From Oct 2022 to Oct 2024

Click Here for more JET2 Charts.

TIDMJET2

RNS Number : 1034F

Jet2 PLC

06 July 2023

Jet2 plc

PRELIMINARY UNAUDITED RESULTS FOR YEARED 31 MARCH 2023

Jet2 plc , the Leisure Travel group (the "Group" or the "Company"), announces its preliminary results for the year ended 31 March 2023.

 
 Group financial highlights                             2023          2022          2020         Change 
                                                       Unaudited                                  2023 
                                                                                                 vs 2020 
 Revenue                                             GBP5,033.5m   GBP1,231.7m   GBP3,584.7m      40% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Operating profit / (loss)                            GBP394.0m    (GBP323.9m)    GBP293.0m       34% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Profit / (loss) before hedge ineffectiveness, 
  FX revaluation and taxation                         GBP390.8m    (GBP376.2m)    GBP264.2m       48% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Profit / (loss) before taxation                      GBP371.0m    (GBP388.8m)    GBP153.2m       142% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Profit / (loss) for the period 
  after taxation                                      GBP290.8m    (GBP315.4m)    GBP116.0m       151% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Basic earnings per share                              135.4p       (147.0p)        77.9p         74% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
 Final dividend per share                               8.0p            -             -           100% 
--------------------------------------------------  ------------  ------------  ------------  ----------- 
            *      The rebound in consumer confidence to travel helped underpin 
                    a significantly improved financial performance as Group profit 
                    before FX revaluation and taxation increased to GBP390.8m (2022: 
                    GBP376.2m loss ) which was 48% higher than the pre-Covid financial 
                    year ended 31 March 2020 reporting period. 
            *      Jet2.com flew a total of 16.22m (2022: 4.85m) single sector 
                    passengers, an increase of 234%, with higher margin package 
                    holiday customers representing 64.9% of overall flown passengers 
                    (2022: 51.3%) which was also 13.2 ppts higher than 2020. 
            *      Pleasingly, average load factor achieved was 90.5% (2022: 69.2%) 
                    on a 156% increase in seat capacity to 17.93m (2022: 7.01m), 
                    underlining the popularity of our leisure travel products. 
            *      Despite having absorbed delay and associated compensation costs 
                    in excess of GBP50.0m as a direct impact of the broader disruption 
                    seen across the aviation sector and its supply chains in mid-summer 
                    2022, Group operating profit increased by 222% to GBP394.0m 
                    (2022: GBP323.9m loss). 
            *      Total cash balances at the year-end of GBP2,624.7m (2022: GBP2,228.5m) 
                    increased 18%. 'Own Cash' which excludes advance customer deposits, 
                    increased by 4% to GBP1,127.1m (2022: GBP1,083.8m). 
            *      In view of the positive financial performance and in keeping 
                    with its previous principle of paying a moderate dividend, 
                    the Board has resolved to pay a final dividend of 8.0p per 
                    share (2022: nil). 
            *      In March 2023, the Group was delighted to take delivery of 
                    the first of its 98 firm ordered Airbus A321/A320neo aircraft, 
                    which could eventually extend up to 146 aircraft. 
            *      In April 2023, the Group announced an equity investment in 
                    a new SAF production plant to be constructed in the North West 
                    of England - one of the first such deals in UK aviation. 
            *      We recently announced our intention to commence operations 
                    from Liverpool John Lennon Airport from March 2024 - our eleventh 
                    UK base. 
            *      On sale seat capacity for Summer 2023 is currently 7.5% higher 
                    than Summer 2022 at 15.29m seats. Although average load factors 
                    are currently 0.8ppts behind Summer 2022 at the same point, 
                    positively the mix of higher margin Package Holiday customers 
                    represents over 73% of total departing passengers at present, 
                    which is over 5ppts higher than Summer 2022. 
            *      Despite the Group facing various input cost pressures, pricing 
                    to date for both our package holidays and flight-only products 
                    has been robust and consequently margins per booked passenger 
                    satisfactory. 
            *      We are cognisant of how quickly the macro-economic environment 
                    is evolving and how this may affect consumers' future spending. 
                    However, we continue to believe that the end-to-end package 
                    holiday is a resilient and popular product, particularly during 
                    difficult economic times. 
            *      For the long term, our strategy remains consistent - To be 
                    the UK's Leading and Best Leisure Travel Business - with 'People, 
                    Service, Profits' serving as our guiding principles. Put simply, 
                    our Customers want to be looked after throughout their eagerly 
                    anticipated holiday experience by a happy, well paid and motivated 
                    team of Jet2 Colleagues who continue to deliver outstanding 
                    service, thereby generating sustainable long-term profitability 
                    - in short, Nothing Beats a Jet2holiday! 
 
 

Further information on the calculation of this measure can be found in Note 6.

Analyst and Investor call

The management team will host an investor and analyst conference call at 9.00am UK time, on Thursday, 6th July 2023. For dial-in details for the conference call, please contact Buchanan Communications in advance to register: Jet2@buchanan.uk.com.

OUR CHAIRMAN'S STATEMENT

The conclusion of the Covid-19 pandemic and the unprecedented challenges faced by everyone during it, unleashed an enormous surge of pent-up demand for those experiences that consumers had truly missed in the preceding two years. One of the most important of these experiences was the opportunity to enjoy a much deserved, rejuvenating and relaxing overseas holiday.

And I am pleased to say, that despite a difficult return to normal operations, primarily due to the lack of planning and preparedness of many airports and associated suppliers, our UK Leisure Travel Business - which encompasses Jet2holidays, our acclaimed ATOL licensed package holidays provider, and Jet2.com, our award-winning airline - responded determinedly to provide our Customers with their eagerly anticipated Real Package Holidays from Jet2holidays(R).

Results for the financial year

The resumption of international travel in early 2022 resulted in the Group's financial performance for the year ended 31 March 2023 exceeding our pre-pandemic performance for the year ended 31 March 2020.

The positive progress reflects the decisions made in late 2021 to retain over 8,000 loyal Colleagues throughout the pandemic, recruiting and training in good time for Summer 2022, making early and substantial marketing investments and giving meaningful salary increases to all Colleagues. It also demonstrates the robust and sustainable nature of our business model.

For the reporting period, seat capacity increased 13% against 2020 and buoyant customer demand resulted in the business achieving an average load factor of 90.5% (2020: 92.2%). Higher margin Package Holiday customers grew by 40% to 5.29m (2020: 3.77m) and were a materially higher mix of total departing passengers at 64.9% (2020: 51.7%), with Flight-Only passengers reducing by 19% to 5.69m (2020: 7.06m).

Despite being very well prepared for our summer operations, plus the exceptional dedication of our Colleagues who consistently went above and beyond to ensure our Customers could finally embark on their long-awaited holidays, regrettably some Customers experienced frustrating delays. These hold ups were a direct consequence of the widespread disruption experienced throughout the aviation sector, including but not limited to ground handling suppliers' poor customer service, long queues for airport security checks and bottlenecks in baggage handling areas, all of which led to extreme levels of airport congestion. Consequently, delay and associated compensation costs under Regulation EU261 UK, exceeded GBP50.0m.

Despite these challenges, we were very proud that Jet2.com earned the accolade of being the only UK airline not to cancel a flight during July and August 2022, according to leading travel intelligence company, OAG - we were determined that our Customers should enjoy their well-deserved holidays!

Similarly, the financial performance of our in-flight retail operation was weaker than expected during early Summer 2022. This was largely attributable to inadequate onboard product availability caused by resource limitations at our third-party in-flight retail provider.

However, despite having absorbed these substantial disruption costs, I am pleased to report that Group profit before FX revaluation and taxation increased to GBP390.8m (2022: GBP376.2m loss ) which was also 48% higher than the financial year ended 31 March 2020, the last pre-Covid reporting period.

After accounting for net FX revaluation losses of GBP19.8m (2022: GBP12.6m), total profit before taxation was GBP371.0m (2022: GBP388.8m loss).

Further information on the calculation of this measure can be found in Note 6.

Dividend

Prior to the pandemic, and subject to satisfactory financial performance, the Board traditionally paid a modest dividend whilst seeking to re-invest the majority of cash generated in growing the business. For the year, basic earnings per share were 135.4p (2022: (147.0p)) and in view of the positive financial performance and in keeping with its previous principle, the Board has resolved to pay a final dividend of 8.0p per share (2022: nil). This final dividend is subject to shareholders' approval at the Company's Annual General Meeting on 7 September 2023 and will be payable on 25 October 2023 to shareholders on the register at the close of business on 22 September 2023, with the ex-dividend date being 21 September 2023.

Our Strategy

To be the UK's Leading and Best Leisure Travel business

In February 2003, Jet2.com proudly welcomed its first Customers onboard, and over 100 million happy holidaymakers later, we were thrilled to celebrate our 20th anniversary in February 2023, with Jet2holidays now the UK's largest package holiday provider and Jet2.com the UK's 3rd largest airline by number of passengers flown.

While many aspects have evolved in the intervening years, our unwavering commitment to our "Customer First" ethos has remained steadfast and is what has driven Jet2's continuing success. At the core of Jet2holidays and Jet2.com brand values lies the dedication to delivering exceptional service. We recognise that whether our Customers choose to embark on end-to-end Real Package Holidays from Jet2holidays(R), or simply enjoy a holiday flight with Jet2.com, providing an appealing and memorable holiday experience fosters loyalty and encourages repeat bookings.

Our long-term ambition remains: To be the UK's Leading and Best Leisure Travel business. Achieving this objective demands a clear strategic vision and an unwavering customer focus, accompanied by consistent and often material investment.

New Aircraft Order

In October 2022 we were pleased to announce that we were entering into a further agreement with Airbus to purchase another 35 new firm ordered Airbus A321/A320neo aircraft with the ability for this to extend up to 71 aircraft. Combined with existing orders, this brings the total number of firm ordered Airbus A321/A320neo aircraft for the Group to 98, which could eventually extend up to 146 aircraft. Critically, this agreement ensures certainty of supply well into the next decade.

The Group was delighted to take delivery of the first of these aircraft in March 2023. With a spacious cabin capacity for 232 passengers and operational advantages through reduced fuel consumption and resultant carbon emissions per seat, plus a much lower noise footprint against previous generation single aisle aircraft models, these aircraft will enable Jet2.com and Jet2holidays to grow more sustainably. We are certain that the introduction of the A321/A320neo aircraft will ensure that our Customers continue to have a wonderfully comfortable and enjoyable experience for many years to come.

Investment in Sustainable Aviation Fuel

As a socially and environmentally responsible airline and tour operator, we take our environmental impact seriously. We firmly believe that Sustainable Aviation Fuel ("SAF") is currently one of the most effective solutions for reducing carbon emissions and is key to achieving net-zero status by 2050. Consequently, in April 2023, the Group announced an equity investment in a new SAF production plant to be constructed in the North West of England - one of the first such deals in UK aviation. The Fulcrum NorthPoint facility, being developed by Fulcrum BioEnergy Ltd, will operate as a Waste-to-Fuels plant, and is anticipated to commence SAF production by 2027. Once operational, Jet2.com will receive a significant volume of SAF from the plant and expects to achieve net emissions reductions totalling approximately 400,000 tonnes of CO(2) over the 15-year period of the agreement.

New Training Facility

In February 2023, we were pleased to announce a new Airbus A321 flight simulator and training centre at Cheadle, near Manchester Airport. The new centre builds on the success of the Company's first training centre near Bradford, which opened in 2014. This bespoke facility will provide a centre of excellence for existing and new pilots, engineers, cabin crew and ground operations Colleagues. The three-storey building will house full and fixed-base flight simulators, cabin crew trainer units, engineering training devices to enact real-life scenarios, high-tech computer based training rooms, fully equipped classrooms and briefing rooms. The centre enables Jet2.com to underpin its growth ambitions by training thousands of Colleagues each and every year.

New UK Base

Finally in May 2023, we were delighted to announce the launch of our highly acclaimed flights and holidays from Liverpool John Lennon Airport. This development marks a significant milestone as it becomes our eleventh UK base and is aligned with our long-term strategy to sustainably grow our successful business.

Recognising the significant demand from both consumers and independent travel agents across Liverpool, Merseyside and the wider region, we are looking forward to commencing operations from March 2024. Between now and then, our focus is on meticulous preparation to ensure a seamless launch, so that from day one we can provide Customers with the same award-winning service which has delighted millions of others across the UK for so many years!

Nothing Beats a Jet2holiday!

Our Customers

We deeply appreciate the trust that our Customers place in us to provide them with an exceptional holiday experience, and there is no better validation of our performance than the recognition received from the consumer champion Which? and its members.

We take immense pride in the fact that Jet2.com, Jet2holidays, and Jet2CityBreaks continue to hold the distinguished status of being Which? Recommended Providers, reflecting our unwavering commitment to delivering exceptional service. Additionally in July 2023, Jet2Villas was named as a Which? Recommended Provider for the first time - a great achievement. We are also delighted that Jet2.com and Jet2holidays have recently been honoured as Travel Brand of the Year 2023 by Which?, marking the second consecutive year and the third time in six years that we have received this prestigious accolade. This recognition acknowledges our dedication to prioritising our Customers' satisfaction, both throughout the challenging period of the pandemic and following the resumption of international travel.

We understand that during times of uncertainty, consumers seek operators they can trust and who offer them the best value for their money. Therefore, our total focus leading up to Summer 2023 has been on delivering the same industry-leading levels of customer service that our Customers have come to expect from us.

With this in mind, we have assumed direct control of all ground-handling operations (check-in; baggage handling and aircraft despatch) at a further two of our UK bases: Bristol and Newcastle - this means we now independently 'self-handle' at seven of our eleven UK bases and our Colleagues now control and manage passenger check-in at all but one of our UK bases. This expansion ensures a seamless and efficient experience for our valued Customers and eliminates any reliance on third parties for these crucial aspects of our operations.

As a result of our unwavering focus to do what is right for our Customers, we are confident they will be even more determined to indulge in the wonderful experience of a well-deserved Jet2holiday and we are fully committed to doing our very best to ensure that each of them "has a lovely holiday".

Our Colleagues

At the core of our company culture lies a deep-rooted "Customer First" ethos, guided by our principles of People, Service, Profits - great and attentive customer service is where we aim to excel.

Whether in the UK or Overseas, the ability of our Colleagues to continuously display our Company's 'Take Me There' values (Be Present; Create Memories; Take Responsibility; and Work As One Team ), is of paramount importance in upholding our standards. This "Customer First" approach has set us apart and enabled us to be consistently recognised as an industry leader for our outstanding customer service.

Throughout the year, our Colleagues have worked tirelessly, particularly during the challenging period of early Summer 2022. The Board is hugely appreciative for their tremendous support and efforts, which enabled Jet2.com and Jet2holidays to fulfil the dreams of so many Customers, taking them on their well-deserved and eagerly anticipated holidays.

To recognise the invaluable contribution our Colleagues made, we were very pleased to award pay increases totalling 8% during the year ended 31 March 2023 together with an end of summer season 'Thank You Bonus' of GBP1,000 each. We firmly believe that happy and well paid Colleagues are fundamental to the future success of our business and with this and the pressures of elevated inflation levels in mind, we awarded a pay increase of 9% to them all for the year ending 31 March 2024.

In addition, we launched our award-winning ShareSave Scheme in September 2022, offering Colleagues the opportunity to become shareholders in Jet2 plc, by granting options to acquire shares in the Company at a discount to the prevailing August 2022 share price, subject to the completion of three years' employment. The take-up rate was in excess of 60% - a very pleasing outcome.

Finally, we are delighted that the successful financial performance of the Group for the year ended 31 March 2023 has allowed us to reinstate both our Discretionary Colleague Profit Share Scheme for non-management Colleagues and our Discretionary Bonus Scheme for management Colleagues. These payments, which will be the first in four years due to the pandemic, will be made in the July 2023 payroll.

The Board is dedicated to upholding our People, Service, Profits ethos and is satisfied that the investment made in our Colleagues has resulted in engaged and dedicated teams who are committed to carry on delivering the outstanding "Customer First" service that means so much to our Customers, and which has contributed immeasurably to our long-term success.

Our Stakeholders

Suppliers

We recognise the importance of cultivating strong relationships with our many suppliers to realise our growth objectives. We were delighted to be able to resume our annual supplier conference where we focused on how we and our supplier partners can work together effectively to forge mutually beneficial long-term relationships. These strong partnerships are proving crucial as we head towards our peak flying operation in Summer 2023.

We also acknowledge the importance of timely and full payment to our suppliers, including of course our hotel partners, to underpin their financial well-being. In accordance with the 'Duty to report on payment practices and performance' legislation, the average invoice payment period during the year reduced to 20.2 days (2022: 23.9 days) for Jet2.com Limited and to 22.7 days (2022: 27.5 days) for Jet2holidays Limited.

Shareholders

We maintain open lines of communication with our shareholders and institutional investors, engaging with them appropriately through regular interactions such as at Preliminary and Interim results meetings, individual investor meetings, broker/institutional conferences and at our Annual General Meeting.

UK Government and the Civil Aviation Authority

The Executive Directors and certain senior managers within the organisation regularly engage with senior representatives of the UK government and regulatory bodies. In the past year, discussions focused on addressing the operational disruption faced by the aviation industry in the early stages of the Summer 2022 season, as well as numerous meetings with the government and industry associations on the future of sustainable air travel. Furthermore, our Chief Executive Officer actively engages with government, business and tourism bodies in the UK and in our destination countries, fostering relationships at both national and regional levels.

In addition, our Group Chief Financial Officer has regular dialogue with the UK Civil Aviation Authority on the financial performance of the Group and our Accountable Manager, the Managing Director of Jet2.com, meets regularly with his respective counterparts.

Our Commitment to Sustainability

As a major provider of leisure travel in the UK, taking millions of people away on holiday, Jet2 plc aspires to be "the leading brand in sustainable air travel and package holidays".

Consequently, we endeavour to operate in the most efficient and sustainable manner possible, focusing on minimising both emissions and carbon intensity (emissions per passenger kilometre) and we continue to make steady progress against the targets published in our Sustainability Strategy in September 2021.

In addition to the significant investment made in new Airbus aircraft which extends well into the next decade, and our commitment to long-term SAF production, our efficient operations also contribute to minimising our environmental impact in terms of noise and air quality pollutants. These efforts are integral to our journey towards achieving our Jet2 Net Zero 2050 commitment.

Following the return to more normalised levels of flight activity and pre-pandemic load factors, the Group successfully reduced its CO(2) emissions per passenger kilometre from 67.0g in 2019 to 65.9g, representing positive progress towards our 2025 target of 65.0g.

Jet2 plc fully complies with both national and international efforts aimed at combatting climate change, which include the UK and EU Emission Trading Schemes (ETS) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). In addition, during the year the Group offset all emissions not covered by UK and EU ETS existing carbon pricing mechanisms. This equated to voluntary offsets of over 1.5m tonnes of carbon emissions. We were delighted to work with our offsetting partner, Vertis, in selecting projects including the Darajat Geothermal Project in Indonesia and the Aksu Wind Power Project in Türkiye, ensuring that the real-world impact of our carbon offsetting program is maximised.

Following consistent investment, 47% of our Ground Support Equipment now operates on zero-carbon technology, and we have achieved an 80% reduction in single-use plastics on our aircraft as compared to 2019 - equivalent to removing 11 million items per annum!

Finally, Jet2holidays is acting on the environmental impacts in its supply chain by continuing discussions with its hotel partners and the Global Sustainable Tourism Council to implement a hotel sustainability labelling scheme, thereby enabling Customers to make more sustainable accommodation choices. More detailed information on the Group's Sustainability Strategy can be found at www.jet2plc.com/sustainability .

Our Board

The Board acknowledges its responsibility for ensuring the enduring prosperity of the Group. This includes overseeing its effective management and being accountable to shareholders by making decisions that generate both long-term value and ensure that the foundations of the business remain strong and sustainable in an ever-changing marketplace.

Consequently in April 2023, the Board was very pleased to announce the appointments of Simon Breakwell and Angela Luger as independent Non-Executive Directors of the Company with effect from 27 April and 3 July 2023 respectively. Their extensive expertise aligns perfectly with the current phase of our growth, and we have full confidence in their ability to make substantial contributions to the success of our business as we continue our focus on People, Service, Profits.

Outlook

On sale seat capacity for Summer 2023 is currently 7.5% higher than Summer 2022 at 15.29m seats. Although average load factors are currently 0.8ppts behind Summer 2022 at the same point, positively the mix of higher margin Package Holiday customers represents over 73% of total departing passengers at present, which is over 5ppts higher than Summer 2022.

Despite the Group facing various input cost pressures such as fuel, carbon taxes, a strengthened US dollar and wage increases, as well as investment to support the well-being and work-life balance of our Colleagues, pricing to date for both our package holidays and flight-only products has been robust and consequently margins per booked passenger satisfactory.

Looking forward, although we continue to believe that the end-to-end package holiday is a resilient and popular product, particularly during difficult economic times and o ur ability to offer truly variable duration holidays enables our Customers to tailor their holiday plans to suit their individual budgets, we are cognisant of how quickly the macro-economic environment is evolving and how this may affect consumers' future spending.

On that basis, and with the peak summer months of July, August and September not yet complete plus the majority of Winter 2023/2024 seat capacity still to sell, it remains premature as is always the case at this time of year, to provide definitive guidance as to Group profitability for the financial year ending 31 March 2024.

For the long term our strategy remains consistent - To be the UK's Leading and Best Leisure Travel Business - with 'People, Service, Profits' serving as our guiding principles. Put simply, our Customers want to be looked after throughout their eagerly anticipated holiday experience by a happy, well paid and motivated team of Jet2 Colleagues who continue to deliver outstanding service, thereby generating sustainable long-term profitability - in short, Nothing Beats a Jet2holiday!

Philip Meeson

Executive Chairman

6 July 2023

BUSINESS & FINANCIAL REVIEW

The Group's financial performance for the year ended 31 March 2023 is reported in accordance with UK-adopted international accounting standards and applicable law.

 
 Summary Income Statement                                         2023                  2022        2020     Change 
                                                                  GBPm                  GBPm        GBPm       2023 
                                                             Unaudited                                      vs 2020 
 Revenue                                                       5,033.5               1,231.7     3,584.7        40% 
 Net operating expenses                                      (4,639.5)             (1,555.6)   (3,291.7)      (41%) 
-------------------------------------------------  -------------------  --------------------  ----------  --------- 
 Operating profit / (loss)                                       394.0               (323.9)       293.0        34% 
 Net financing expense (excluding Net FX 
  revaluation losses)                                            (5.8)                (53.4)      (29.5)        80% 
 Profit on disposal of property, plant and 
  equipment                                                        2.6                   1.1         0.7       271% 
-------------------------------------------------  -------------------  --------------------  ----------  --------- 
 Profit / (loss) before hedge ineffectiveness, 
  FX revaluation and taxation                                    390.8               (376.2)       264.2        48% 
 Hedge ineffectiveness                                               -                     -     (108.4)       100% 
 Net FX revaluation losses                                      (19.8)                (12.6)       (8.1)     (144%) 
-------------------------------------------------  -------------------  --------------------  ----------  --------- 
 Profit / (loss) before taxation from continuing 
  operations                                                     371.0               (388.8)       147.7       151% 
 Profit before taxation from discontinued 
  operations                                                         -                     -         5.5     (100%) 
 Profit / (loss) before taxation                                 371.0               (388.8)       153.2       142% 
 Net financing expense (including Net FX 
  revaluation losses)                                             25.6                  66.0        37.6        32% 
 Depreciation                                                    185.2                 158.3       204.5         9% 
 Hedge ineffectiveness                                               -                     -       108.4       100% 
 EBITDA from continuing operations*                              581.8               (164.5)       498.2        17% 
=================================================  ===================  ====================  ==========  ========= 
 

* EBITDA is included as an alternative performance measure in order to aid users in understanding the underlying operating performance of the Group. Further information can be found in Note 6.

Customer Demand & Revenue

The rebound in consumer confidence to travel following the resumption of international flying in early 2022 reaffirmed our decision to invest well ahead of the Summer 2022 season to ensure we had an ample and capable workforce available to deliver our popular holiday offering.

As a result, on sale seat capacity for the Summer 2022 season remained 14% higher than Summer 2019. This planning stability allowed us to capitalise on the sustained customer demand, particularly for our package holidays and, combined with a resilient pricing environment and effective cost management, not only resulted in a significantly improved financial performance compared to the prior pandemic-impacted year, but also materially surpassed the result achieved in the pre-pandemic year ended 31 March 2020.

D uring the financial year Jet2.com flew a total of 16.22m (2022: 4.85m) single sector passengers, an increase of 234% with customers choosing our end-to-end package holiday products increasing by 310% to 5.29m (2022: 1.29m) assisted by certain high volume, popular routes operating package-only flights. Consequently, higher margin package holiday customers represented 64.9% of overall flown passengers (2022: 51.3%) which was 13.2 ppts higher than 2020.

Pleasingly, average load factor achieved was 90.5% (2022: 69.2%) on a 156% increase in seat capacity to 17.93m (2022: 7.01m), underlining the popularity of our leisure travel products and the resurgence in consumer confidence to travel, with load factors in the latter months of the financial year broadly in line with those of 2019/20.

Average flight-only ticket yield per passenger sector at GBP100.28 (2022: GBP67.90) was 48% higher than the prior year, due to changes in the mix of destinations flown, notably an increase to those in the Eastern Mediterranean, combined with strong consumer demand meaning fewer promotional offers were required.

The average price of a Jet2holidays package holiday increased by 10% to GBP761 (2022: GBP689) reflecting changes in destination mix and favourable pricing driven by the consistently robust consumer demand.

Non-Ticket Retail Revenue per passenger sector declined by 14% to GBP25.99 (2022: GBP30.28). This decrease can be largely attributed to the weaker than anticipated performance of our in-flight retail operations, primarily due to resource limitations at Jet2.com's third party in-flight retail supplier which affected onboard product availability. Pleasingly, towards the end of summer this disruption had largely abated and availability levels returned to the high standards our Customers have come to expect and enjoy.

As a result, overall Group Revenue increased by 309% to GBP5,033.5m (2022: GBP1,231.7m).

Net Operating Expenses

Higher levels of flying activity led to a corresponding 250% increase in direct operating expenses (including direct staff costs) to GBP3,843.0m (2022: GBP1,099.3m), significantly lower than the revenue growth.

It is important to note that this result was achieved despite the severe operational challenges experienced during mid-Summer 2022 due to the lack of planning and investment by many airports and their associated suppliers. Despite the tremendous efforts of our Colleagues, this disruption led to a significant increase in flight delays in excess of three hours deemed eligible under EU261 UK. As a result, delay and associated compensation costs exceeded GBP50.0m, over 200% higher than those incurred in the financial year ended 31 March 2020.

As a gesture of the Board's huge appreciation of their tremendous efforts and support, all Colleagues received an end of summer 'Thank You Bonus' of GBP1,000 in recognition of the strong operational and financial performance achieved, despite the very challenging circumstances.

Underlying wage costs increased as a result of an 8% pay award made during the year, which recognised the fact that many had taken up to a 20% pay cut for the majority of the pandemic period to support the Company and also reflected the challenging inflationary environment.

Additionally, the Group continued to invest significant monies into colleague recruitment and training, not only to ensure it was well-placed to capitalise on consumer demand, but also to support a balanced lifestyle, particularly in operational areas.

The purchase of carbon allowances to satisfy our obligations under the UK and EU ETS resulted in a total charge of GBP76.7m and were acquired at an average price (excluding voluntary offsetting) of GBP63.17, up by 14% on 2022 (GBP55.35) and 350% on 2020 (GBP14.03).

B rand and direct marketing investment was over GBP90.0m higher than the previous year at approximately GBP220m as the business ramped up activity post-pandemic to optimise load factors for Summer 2022, and also drive customer bookings for Winter 2022/2023 and Summer 2023.

Pleasingly, the successful performance of the Group has meant the reinstatement of both our Discretionary Colleague Profit Share Scheme for non-management Colleagues at 6% of pre-tax profit and Discretionary Bonus Scheme for management Colleagues. These payments totalling approximately GBP45m, will be the first since 2019 due to the pandemic and will be made in the July 2023 payroll.

As a result, net operating expenses increased by 198% to GBP4,639.5m (2022: GBP1,555.6m).

Operating profit

Overall Group operating profit for the year was GBP394.0m (2022: GBP323.9m loss), a 34% increase on 2020 (GBP293.0m).

Net Financing Expense

Net financing expense of GBP25.6m (2022: GBP66.0m) is stated after finance income of GBP58.7m (2022: GBP5.1m), which improved materially due to higher levels of cash deposits coupled with increases to central bank interest rates made over the course of the financial year. Finance expenses of GBP64.5m (2022: GBP58.5m) increased primarily due to annualisation of the interest expense on the Group's convertible bond, which resulted in a cost of GBP17.3m (2022: GBP13.6m) and additional interest incurred on lease liabilities as a result of aircraft acquired to support further fleet expansion.

In addition, a net FX revaluation loss of GBP19.8m (2022: GBP12.6m) resulted from the year end revaluation of foreign currency denominated monetary balances.

Statutory Profit for the Year

As a result, the Group made a statutory profit before taxation of GBP371.0m (2022: GBP388.8m loss) which was over 150% higher than the pre-pandemic performance in the year ended 31 March 2020.

Taxation

The Group recorded a tax charge of GBP80.2m (2022: GBP73.4m credit), at an effective tax rate of 22% (2022: 19%). The Finance Bill enacted on 10 June 2021 detailed a proposed increase in the rate of corporation tax from 19% to 25% from 1 April 2023 and consequently, the Group has provided for all deferred tax at 25% (2022: 25%).

Statutory Net Profit for the year and Earnings Per Share

Consequently, the Group made a statutory profit after taxation of GBP290.8m (2022: GBP315.4m loss) and basic earnings per share were 135.4p (2022: (147.0p)).

Other Comprehensive Income and Expense

The Group had an Other comprehensive expense of GBP179.0m (2022: GBP193.1m income); the change compared to the prior year primarily due to the transfer to the consolidated income statement over the course of the current year of hedged gains from in-the-money fuel derivatives from the previous year.

Cash Flows and Financial Position

The Group continues to maintain a strong balance sheet with significant liquidity which gives flexibility to pursue its growth aspirations and to refresh certain of its aircraft fleet.

The following table sets out condensed cash flow data and the Group's cash and cash equivalents and money market deposits:

 
  Summary of Cash Flows                                      2023                 2022      2020     Change 
                                                             GBPm                 GBPm      GBPm       2023 
                                                                                                    vs 2020 
                                                        Unaudited 
 EBITDA from continuing operations                          581.8              (164.5)     498.2        17% 
 EBITDA from discontinued operations                            -                    -      20.9     (100%) 
 Other Income Statement adjustments                           7.8                  3.0     (0.4)     2,050% 
-------------------------------------------  --------------------  -------------------  --------  --------- 
 Operating cash flows before movements 
  in working capital                                        589.6              (161.5)     518.7        14% 
 Movements in working capital                               362.6                966.0    (21.5)     1,787% 
 Payment on settlement of derivatives                           -               (15.5)         -          - 
 Interest and taxes                                         (0.1)               (38.0)    (54.1)       100% 
-------------------------------------------  --------------------  -------------------  --------  --------- 
 Net cash generated from operating 
  activities                                                952.1                751.0     443.1       115% 
 Purchase of intangibles                                        -                    -    (26.8)       100% 
 Purchase of property, plant and equipment 
  and right-of-use assets                                 (196.6)              (108.4)   (211.3)         7% 
 Movement on borrowings                                   (287.7)                268.5      27.0   (1,166%) 
 Movement on lease liabilities                             (76.2)               (67.5)    (99.7)        24% 
 Dividends paid in the year                                 (6.4)                    -    (15.5)        59% 
 Other items                                                 11.0                  5.9       9.1        21% 
-------------------------------------------  --------------------  -------------------  --------  --------- 
 Net increase in cash and money market 
  deposits (a)                                              396.2                849.5     125.9       215% 
===========================================  ====================  ===================  ========  ========= 
 

(a) Cash flows are reported including the movement on money market deposits (cash deposits with maturity of more than three months from point of placement) to give readers an understanding of total cash generation. The Consolidated Statement of Cash Flows reports net cash flow excluding these movements. Further information on these balances as at the year-end can be found in Note 6.

Net Cash Generated From Operating Activities

The Group generated operating cash inflows before working capital movements of GBP589.6m (2022: GBP161.5m outflow) primarily driven by the Leisure Travel business trading performance which resulted in EBITDA improving to GBP581.8m (2022: EBITDA of GBP164.5m loss).

In addition, movements in working capital resulted in cash inflows of GBP362.6m (2022: GBP966.0m), principally due to holding higher levels of customer cash deposits than the prior year from much improved forward bookings and an increase in trade and other payables due to increased operational activity in the final quarter of the year as compared to the previous year. After net interest received of GBP15.1m (2022: GBP38.4m paid) and corporation tax payments of GBP15.2m (2022: GBP0.4m refunded), the Group generated GBP952.1m of cash from its operating activities (2022: GBP751.0m).

Net Cash Used In Investing Activities

Total capital expenditure amounted to GBP196.6m (2022: GBP108.4m) primarily representing pre-delivery payments made for the Group's Airbus A321/A320neo order and including the balance payment for the first Airbus A321neo delivery received in March 2023. Additionally, we continued to invest in the ongoing maintenance of our existing aircraft fleet, ensuring its long-term reliability and performance. Furthermore, we were delighted to acquire a second flight simulator and training centre near our Manchester Airport base. This bespoke facility will serve as an additional dedicated training hub for our pilots, cabin crew, engineers and other operational functions as we continue to grow over the coming years. Finally, as part of our commitment to achieve the targets set out within our Sustainability Strategy, we continued to invest in improving the carbon efficiency of our ground service equipment at our UK bases, transitioning from combustion engine to electric (either fully electric or hybrid) powered alternatives.

Net Cash Used In Financing Activities

Net cash used in financing activities amounted to GBP370.3m (2022: GBP201.0m cash generated from financing activities) following repayments of borrowings and lease liabilities of GBP363.9m (2022: GBP327.0m), which included repayment of the existing GBP65.0m Revolving Credit Facility ("RCF") and early repayment of a GBP150.0m short term loan taken out during the pandemic, and an interim dividend payment of GBP6.4m (2022: nil). There were no new loans advanced during the year (2022: GBP528.0m).

Other items totalling an inflow of GBP11.0m (2022: GBP5.9m) are largely driven by the effect of foreign exchange rate changes on the Group's cash and money market deposit balances totalling GBP8.3m (2022: GBP4.8m) and GBP2.7m proceeds from engine sales (2022: GBP1.1m).

Overall, this resulted in a net cash inflow of GBP396.2m (2022: GBP849.5m) and a year-end gross cash position (including money market deposits) of GBP2,624.7m (2022: GBP2,228.5m). Net cash, stated after borrowings and lease liabilities increased by 90% to GBP1,249.7m (2022: GBP658.3m).

At the reporting date, the Group had received payments in advance of travel from its Leisure Travel customers amounting to GBP1,497.6m (2022: GBP1,144.7m) and had increased its 'Own Cash' balance to GBP1,127.1m (2022: GBP1,083.8m).

Further information on the calculation of this measure can be found in Note 6.

Liquidity

The Group maintains a robust financial position, characterised by a strong balance sheet and ample liquidity. This financial strength gives the flexibility to pursue our growth ambitions, comfortably repay our borrowings and to renew certain aircraft within our fleet.

In October 2022, the Group successfully renegotiated its RCF, with the addition of one new financing partner, National Westminster Bank plc, alongside our three existing supportive relationship banks: Barclays Bank plc; HSBC UK Bank plc; and Lloyds Bank plc. The new RCF, which remains undrawn, provides the Group with unsecured available facilities of up to GBP300m and represents an increase of GBP200m from the previous arrangement.

An important feature of the new facility is its sustainability focus. Commencing 1 April 2023, it will be linked via a margin ratchet adjustment to sustainability criteria, specifically the Group's key climate metric - gCO2 per passenger kilometre aircraft fuel burn. This integration of sustainability targets into our financing structure underscores our commitment to addressing the climate impact and aligning our financial operations with our environmental objectives.

 
 Summary Statement of Financial                     2023        2022      2020    Change 
  Position 
                                                    GBPm        GBPm      GBPm   2023 vs 
                                                                                    2020 
                                               Unaudited 
----------------------------------  --------------------  ----------  --------  -------- 
 Non-current assets (a)                          1,519.8     1,363.9   1,492.7        2% 
 Net liabilities (b)                             (115.0)      (87.6)   (138.7)       17% 
 Cash and money market deposits                  2,624.7     2,228.5   1,387.5       89% 
 Deferred revenue                              (1,563.6)   (1,189.1)   (745.2)    (110%) 
 Borrowings                                      (729.2)     (991.7)   (485.7)     (50%) 
 Lease liabilities                               (645.8)     (578.5)   (672.7)        4% 
 Deferred taxation                                (36.7)      (12.6)    (78.7)       53% 
 Derivative financial instruments                 (41.8)       163.7   (191.5)       78% 
 Assets held for sale                                  -           -      66.4    (100%) 
 Total shareholders' equity                      1,012.4       896.6     634.1       60% 
==================================  ====================  ==========  ========  ======== 
 

(a) Stated excluding derivative financial instruments.

(b) Stated excluding cash and cash equivalents, money market deposits, deferred revenue, borrowings, lease liabilities and derivative financial instruments.

Total shareholders' equity increased by GBP115.8m (2022: GBP67.6m decrease) which included the profit after taxation of GBP290.8m (2022: GBP315.4m loss). This was partially offset by a net movement within the cash flow hedging and cost of hedging reserves of GBP182.9m, notably the crystallisation of prior year in-the-money fuel derivatives during the year.

Our Leisure Travel business emerged from the pandemic at the beginning of 2022 firmly on the front foot, made possible by its strong Own Cash position, a well-capitalised Balance Sheet and a highly committed, skilled workforce. These invaluable resources have helped steer the Group through a phased recovery to more normalised levels of operational activity. Moreover, they form the bedrock of our growth ambitions for the coming years.

In addition, the strength of our balance sheet means the Group is well positioned to capitalise on the growth opportunities that we believe exist for our exciting and dynamic business, but also provides us with the necessary financial resilience to adapt to and navigate potential challenges should they arise.

Gary Brown

Group Chief Financial Officer

6 July 2023

 
 Leisure Travel Key Performance                                                          Change 
  Indicators                                                                            2023 vs 
                                                  2023          2022          2020         2020 
----------------------------------------  ------------  ------------  ------------  ----------- 
 Leisure Travel sector seats available 
  (capacity)                                    17.93m         7.01m        15.85m          13% 
 Leisure Travel passenger sectors 
  flown                                         16.22m         4.85m        14.62m          11% 
 Leisure Travel load factor                      90.5%         69.2%         92.2%   (1.7 ppts) 
 Flight-only passenger sectors 
  flown                                          5.69m         2.36m         7.06m        (19%) 
 Package holiday customers                       5.29m         1.29m         3.77m          40% 
 Package holiday customers % of 
  total passenger sectors flown                  64.9%         51.3%         51.7%    13.2 ppts 
 Flight-only ticket yield per passenger 
  sector (excl. taxes)                       GBP100.28      GBP67.90      GBP85.59          17% 
 Average package holiday price                  GBP761        GBP689        GBP687          11% 
 Non-ticket revenue per passenger 
  sector                                      GBP25.99      GBP30.28      GBP24.91           4% 
 Fuel requirement hedged - next 
  12 months                                      81.8%         87.6%           N/A          N/A 
 Advance sales made as at 31 March         GBP3,028.2m   GBP2,396.0m   GBP1,679.2m          80% 
----------------------------------------  ------------  ------------  ------------  ----------- 
 

For further information please contact:

 
 Jet2 plc 
  Philip Meeson, Executive 
  Chairman 
  Gary Brown, Group Chief       0113 239 
  Financial Officer              7692 
 Cenkos Securities plc 
  Nominated Adviser             020 7397 
  Katy Birkin / Camilla Hume     8900 
 Canaccord Genuity 
  Joint Broker                  020 7523 
  Adam James                     8000 
 Jefferies International 
  Limited 
  Joint Broker                  020 7029 
  Ed Matthews / Becky Lane       8000 
 Buchanan 
  Financial PR 
  Richard Oldworth / Toto       020 7466 
  Berger                         5000 
 

COnsolidated income statement (unaudited)

for the year ended 31 March 2023

 
                                                    Results for      Results for 
                                                            the              the 
                                                     year ended       year ended 
                                                  31 March 2023    31 March 2022 
                                                           GBPm             GBPm 
 
 Revenue                                                5,033.5          1,231.7 
 Net operating expenses                      3        (4,639.5)        (1,555.6) 
------------------------------------------      ---------------  --------------- 
 Operating profit / (loss)                                394.0          (323.9) 
 
 Finance income                                            58.7              5.1 
 Finance expense                                         (64.5)           (58.5) 
 Net FX revaluation losses                               (19.8)           (12.6) 
------------------------------------------      ---------------  --------------- 
 Net financing expense                       4           (25.6)           (66.0) 
 
 Profit on disposal of property, plant 
  and equipment                                             2.6              1.1 
 Profit / (loss) before taxation                          371.0          (388.8) 
 
 Taxation                                                (80.2)             73.4 
------------------------------------------      ---------------  --------------- 
 Profit / (loss) for the year                             290.8          (315.4) 
 (all attributable to equity shareholders 
  of the Parent) 
==========================================      ===============  =============== 
 
 
 Earnings per share 
 - basic               5   135.4 p   (147.0p) 
 - diluted             5   126.6 p   (147.0p) 
--------------------      --------  --------- 
 

Consolidated statement of comprehensive income (UNAUDITED)

for the year ended 31 March 2023

 
                                              Year ended   Year ended 
                                                31 March     31 March 
                                                    2023         2022 
                                                    GBPm         GBPm 
-------------------------------------------  -----------  ----------- 
 
 Profit / (loss) for the year                      290.8      (315.4) 
 
 Other comprehensive (expense) / income 
 Items that are or may be reclassified 
  subsequently to profit or loss: 
 Cash flow hedges: 
    Fair value (losses) / gains                   (49.4)        225.2 
    Net amount transferred to Consolidated 
     Income Statement                            (164.1)         22.4 
    Cost of hedging reserve - changes 
     in fair value                                (17.0)        (8.0) 
    Related taxation credit / (charge)              47.6       (46.5) 
 
 Revaluation of foreign operations                   3.9            - 
-------------------------------------------  -----------  ----------- 
                                                 (179.0)        193.1 
 
 Total comprehensive income / (expense) 
  for the year                                     111.8      (122.3) 
 (all attributable to equity shareholders 
  of the Parent) 
===========================================  ===========  =========== 
 

Consolidated Statement of Financial Position (UNAUDITED)

at 31 March 2023

 
                                         2023      2022 
                                         GBPm      GBPm 
 
 Non-current assets 
 Intangible assets                       26.8      26.8 
 Property, plant and equipment          927.7     845.2 
 Right-of-use assets                    565.3     491.9 
 Derivative financial instruments        14.3      20.5 
-----------------------------------  -------- 
                                      1,534.1   1,384.4 
 ----------------------------------  --------  -------- 
 Current assets 
 Inventories                             40.2       8.5 
 Trade and other receivables            281.3     185.8 
 Derivative financial instruments        45.8     186.3 
 Money market deposits                1,669.5   1,181.0 
 Cash and cash equivalents              955.2   1,047.5 
                                      2,992.0   2,609.1 
 ----------------------------------  --------  -------- 
 Total assets                         4,526.1   3,993.5 
-----------------------------------  --------  -------- 
 
 Current liabilities 
 Trade and other payables               339.1     217.8 
 Deferred revenue                     1,547.2   1,173.4 
 Borrowings                             125.9     134.5 
 Lease liabilities                      101.8      74.8 
 Provisions                              57.4      41.8 
 Derivative financial instruments        85.1      39.6 
                                      2,256.5   1,681.9 
 ----------------------------------  --------  -------- 
 Non-current liabilities 
 Deferred revenue                        16.4      15.7 
 Borrowings                             603.3     857.2 
 Lease liabilities                      544.0     503.7 
 Provisions                              40.0      22.3 
 Derivative financial instruments        16.8       3.5 
 Deferred taxation                       36.7      12.6 
-----------------------------------  -------- 
                                      1,257.2   1,415.0 
 ----------------------------------  --------  -------- 
 Total liabilities                    3,513.7   3,096.9 
-----------------------------------  --------  -------- 
 Net assets                           1,012.4     896.6 
===================================  ========  ======== 
 Shareholders' equity 
 Share capital                            2.7       2.7 
 Share premium                           19.8      19.8 
 Cash flow hedging reserve             (15.3)     155.2 
 Cost of hedging reserve               (17.9)     (5.5) 
 Other reserves                          55.2      51.3 
 Retained earnings                      967.9     673.1 
 Total shareholders' equity           1,012.4     896.6 
===================================  ========  ======== 
 

consolidated statement of cash flows (UNAUDITED)

for the year ended 31 March 2023

 
                                                  2023        2022 
                                                  GBPm        GBPm 
 
 Profit / (loss) before taxation                 371.0     (388.8) 
 Net financing expense (including 
  Net FX revaluation losses)                      25.6        66.0 
 Hedge ineffectiveness                               -         0.8 
 Depreciation                                    185.2       158.3 
 Profit on disposal of property, plant 
  and equipment                                  (2.6)       (1.1) 
 Equity settled share-based payments              10.4         3.3 
 Operating cash flows before movements 
  in working capital                             589.6     (161.5) 
--------------------------------------------  --------  ---------- 
 
 Increase in inventories                        (31.7)       (7.5) 
 Increase in trade and other receivables       (117.5)      (35.5) 
 Increase in trade and other payables            118.7       151.8 
 Increase in deferred revenue                    374.5       866.7 
 Increase / (decrease) in provisions              18.6       (9.5) 
 Payment on settlement of derivatives                -      (15.5) 
--------------------------------------------  --------  ---------- 
 Cash generated from operations                  952.2       789.0 
--------------------------------------------  --------  ---------- 
 
 Interest received                                58.7         5.1 
 Interest paid                                  (43.6)      (43.5) 
 Income taxes (paid) / refunded                 (15.2)         0.4 
 Net cash generated from operating 
  activities                                     952.1       751.0 
--------------------------------------------  --------  ---------- 
 
 Cash used in investing activities 
 Purchase of property, plant and equipment     (193.9)     (107.9) 
 Purchase of right-of-use assets                 (2.7)       (0.5) 
 Proceeds from sale of property, plant 
  and equipment                                    2.7         1.1 
 Net increase in money market deposits         (481.9)   (1,181.0) 
 Net cash used in investing activities         (675.8)   (1,288.3) 
--------------------------------------------  --------  ---------- 
 
 Cash (used in) / generated from financing 
  activities 
 Repayment of borrowings                       (287.7)     (259.5) 
 New loans advanced                                  -       147.9 
 Payment of lease liabilities                   (76.2)      (67.5) 
 Proceeds on issue of convertible 
  bonds                                              -       380.1 
 Dividends paid in the year                      (6.4)           - 
 Net cash (used in) / generated from 
  financing activities                         (370.3)       201.0 
--------------------------------------------  --------  ---------- 
 
 Net decrease in cash in the year               (94.0)     (336.3) 
 Cash and cash equivalents at beginning 
  of year                                      1,047.5     1,379.0 
 Effect of foreign exchange rate changes           1.7         4.8 
 Cash and cash equivalents at end 
  of year                                        955.2     1,047.5 
--------------------------------------------  --------  ---------- 
 
 

Consolidated statement of changes in equity (UNAUDITED)

for the year ended 31 March 2023

 
                            Share      Share   Cash flow    Cost of       Other    Retained   Total shareholders' 
                          capital    premium     hedging    hedging    reserves    earnings                equity 
                                                 reserve    reserve 
                             GBPm       GBPm        GBPm       GBPm        GBPm        GBPm                  GBPm 
----------------------  ---------  ---------  ----------  ---------  ----------  ----------  -------------------- 
 Balance at 31 
  March 2021                  2.7       19.8      (44.2)        0.8       (0.1)       985.2                 964.2 
 
 Total comprehensive 
  expense                       -          -       199.4      (6.3)           -     (315.4)               (122.3) 
 Share-based payments           -          -           -          -           -         3.3                   3.3 
 Issue of convertible 
  bonds (1)                     -          -           -          -        51.4           -                  51.4 
 
 Balance at 31 
  March 2022                  2.7       19.8       155.2      (5.5)        51.3       673.1                 896.6 
 
 Total comprehensive 
  income                        -          -     (170.5)     (12.4)         3.9       290.8                 111.8 
 Share-based payments           -          -           -          -           -        10.4                  10.4 
 Dividends paid 
  in the year                   -          -           -          -           -       (6.4)                 (6.4) 
 
 Balance at 31 
  March 2023                  2.7       19.8      (15.3)     (17.9)        55.2       967.9               1,012.4 
======================  =========  =========  ==========  =========  ==========  ==========  ==================== 
 

(1) In June 2021, senior unsecured convertible bonds were issued generating gross proceeds of GBP387.4m. The equity component of these bonds was valued at GBP51.4m and recognised in other reserves. The remaining balance held in other reserves relates to foreign exchange translation differences arising on revaluation of non-sterling functional currency subsidiaries of the Group, which totalled GBP3.8m at 31 March 2023.

Notes to the UNAUDITED PRELIMINARY ANNOUNCEMENT

for the year ended 31 March 2023

   1.   Accounting policies and general information 

Basis of preparation

The financial information in this preliminary announcement has been prepared and approved by the Board of Directors in accordance with UK-adopted international accounting standards and applicable law ("UK-adopted IAS").

Whilst the information included in this preliminary announcement has been prepared in accordance with UK-adopted IAS, the financial information contained within this preliminary announcement for the years ended 31 March 2023 and 31 March 2022 does not itself contain sufficient information to comply with UK-adopted IAS, nor does it comprise statutory financial statements within the meaning of section 434 of the Companies Act 2006.

The financial information for 2022 is derived from the financial statements for the year ended 31 March 2022, which have been delivered to the Registrar of Companies. The Auditor has reported on the year ended 31 March 2022 financial statements; their report:

   i.              was unqualified. 

ii. did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report; and

   iii.            did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 

The financial statements for the year ended 31 March 2023 will be finalised on the basis of the financial information presented by the Board of Directors in this preliminary announcement and will be delivered to the Registrar of Companies in due course.

The 2023 Annual Report & Accounts (including the Auditor's Report) will be made available to shareholders during the week commencing 7 August 2023. The Jet2 plc Annual General Meeting will be held on 7 September 2023.

The financial information has been prepared under the historical cost convention except for all derivative financial instruments, which have been measured at fair value.

The Group's financial information is presented in pounds sterling and all values are rounded to the nearest GBP100,000 except where indicated otherwise.

Going concern

The Directors have prepared financial forecasts for the Group, comprising profit before and after taxation, balance sheets and cash flows through to 31 March 2026.

For the purpose of assessing the appropriateness of the preparation of the Group's financial statements on a going concern basis, two financial forecast scenarios have been prepared for the 12-month period following approval of these financial statements :

-- A base case which assumes a full unhindered flying programme utilising an aircraft fleet of 120 at load factors above 90% against an 8% increase in seat capacity; and

-- A downside scenario with load factors reduced to 80% from August 2023 to reflect a possible reduction in demand but with no restrictions on flying to any of the Group's destinations.

The forecasts consider the current cash position and an assessment of the principal areas of risk and uncertainty as described in more detail in the Group's Annual Report & Accounts, paying particular attention to the impact of the current UK macro-economic environment and how this may affect consumers' future spending.

In addition to forecasting the cost base of the Group, both scenarios incorporated the funding of future aircraft deliveries with our well-established aircraft financing partners and no mitigating actions taken to defer uncommitted capital expenditure during the forecast period.

The Directors concluded that, given the combination of a closing cash balance (including money market deposits) of GBP2,624.7m at 31 March 2023 together with the forecast monthly cash utilisation, under both scenarios the Group would have sufficient liquidity throughout a period of 12 months from the date of approval of the financial statements at the end of July 2023. In addition, the Group is forecast to meet its RCF covenants at 30 September 2023 and 31 March 2024 under both scenarios with significant headroom.

As a result, the Directors have a reasonable expectation that the Group as a whole has adequate resources to continue in operational existence for a period of 12 months from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2023.

Accounting policies

The accounting policies adopted are consistent with those described in the Annual Report & Accounts for the year ended 31 March 2022.

   2.   Segmental reporting 

IFRS 8 - Operating segments requires operating segments to be determined based on the Group's internal reporting to the Chief Operating Decision Maker ("CODM").

The CODM is responsible for the overall resource allocation and performance assessment of the Group. The Board of Directors approves major capital expenditure, assesses the performance of the Group and also determines key financing decisions. Consequently, the Board of Directors is considered to be the CODM.

The information presented to the CODM for the purpose of resource allocation and assessment of the Group's performance relates to its Leisure Travel segment as shown in the Consolidated Income Statement.

The Leisure Travel business specialises in offering package holidays by its ATOL licensed provider, Jet2holidays, to leisure destinations in the Mediterranean, the Canary Islands and to European Leisure Cities, and scheduled holiday flights by its airline, Jet2.com. Resource allocation decisions are based on the entire route network and the deployment of its entire aircraft fleet. All Jet2holidays customers fly on Jet2.com flights, and therefore these segments are inextricably linked and represent the only segment within the Group.

Revenue is principally generated from within the UK, the Group's country of domicile. No customer represents more than 10% of the Group's revenue. Segment revenue reported below represents revenue generated from external customers.

Revenues for the Group can be further disaggregated by their nature for the purposes of IFRS 15 as follows:

 
                                    2023      2022 
                                    GBPm      GBPm 
                               Unaudited 
----------------------------  ----------  -------- 
 Package holidays                4,028.9     887.9 
 Flight-only ticket revenue        570.3     160.3 
 Non-ticket revenue                421.5     147.0 
 Other Leisure Travel               12.8      36.5 
 Total revenue                   5,033.5   1,231.7 
============================  ==========  ======== 
 
   3.   Net operating expenses 
 
                                                         2023      2022 
                                                         GBPm      GBPm 
                                                    Unaudited 
-------------------------------------------------  ----------  -------- 
 Direct operating costs: 
    Accommodation                                     1,973.6     473.5 
    Fuel                                                521.4     132.8 
    Landing, navigation and third-party handling        403.4     139.5 
    Agent commission                                    142.0      29.5 
    Maintenance                                         105.2      38.7 
    In-flight cost of sales                              76.7      28.9 
    Carbon                                               76.7      11.0 
    Aircraft rentals (less than twelve months)           61.1       0.6 
    Other direct operating costs                        190.1      53.6 
 Staff costs including agency staff                     590.4     313.2 
 Depreciation of property, plant and equipment          118.9     105.2 
 Depreciation of right-of-use assets                     66.3      53.1 
 Other operating charges                                313.7     176.0 
 Total net operating expenses                         4,639.5   1,555.6 
=================================================  ==========  ======== 
 
   4.   Net financing expense 
 
                                                 2023     2022 
                                                 GBPm     GBPm 
                                            Unaudited 
-----------------------------------------  ----------  ------- 
 Finance income                                  58.7      5.1 
 
 Interest expense on aircraft loans            (16.4)   (16.0) 
 Interest expense on other loans                (7.1)    (7.7) 
 Interest expense on convertible bond          (17.3)   (13.6) 
 Interest expense on lease liabilities         (23.7)   (21.2) 
-----------------------------------------  ----------  ------- 
 Finance expense                               (64.5)   (58.5) 
 
 Net foreign exchange revaluation losses       (19.8)   (12.6) 
-----------------------------------------  ----------  ------- 
 Total net financing expense                   (25.6)   (66.0) 
=========================================  ==========  ======= 
 
   5.   Earnings per share 

Basic earnings per share is calculated by dividing the profit / (loss) attributable to the equity owners of the Parent Company by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share is calculated by dividing the profit / (loss) attributable to the equity owners of the Parent Company by the weighted average number of ordinary shares in issue during the year, adjusted for the effects of potentially dilutive share options and deferred awards, along with the potential conversion of the convertible bonds to ordinary shares at maturity in June 2026. In accordance with IAS 33, these were not included in the calculation of diluted earnings per share for the year ended 31 March 2022, as they were anti-dilutive for that loss-making period.

 
                                              2023 
                                            Unaudited                          2022 
                                 Earnings     Weighted      EPS   Earnings     Weighted       EPS 
                                     GBPm      average    pence       GBPm      average     pence 
                                                number                           number 
                                             of shares                        of shares 
                                              millions                         millions 
------------------------------  ---------  -----------  -------  ---------  -----------  -------- 
 
 Basic EPS 
 Profit / (loss) attributable 
  to ordinary shareholders          290.8        214.7    135.4    (315.4)        214.6   (147.0) 
------------------------------  ---------  -----------  -------  ---------  -----------  -------- 
 Effect of dilutive instruments 
 Share options and 
  deferred awards                       -          4.6    (2.8)          -            -         - 
 Convertible bond                    14.0         21.5    (6.0)          -            -         - 
 Diluted EPS                        304.8        240.8    126.6    (315.4)        214.6   (147.0) 
------------------------------  ---------  -----------  -------  ---------  -----------  -------- 
 
   6.   Alternative performance measures 

The Group's alternative performance measures are not defined by IFRS and therefore may not be directly comparable with other companies' alternative performance measures. These measures are not intended to be a substitute for, or superior to, IFRS measurements.

Profit / (loss) before FX revaluation and taxation

Profit / (loss) before FX revaluation and taxation is included as an alternative performance measure in order to aid users in understanding the underlying operating performance of the Group excluding the impact of foreign exchange volatility.

EBITDA

Earnings before interest, tax, depreciation and amortisation (EBITDA) is included as an alternative performance measure in order to aid users in understanding the underlying operating performance of the Group.

These can be reconciled to the IFRS measure of profit / (loss) before taxation as below:

 
                                                         2023      2022 
                                                         GBPm      GBPm 
                                                    Unaudited 
                                                  -----------  -------- 
 
 Profit / (loss) before taxation                        371.0   (388.8) 
 Net FX revaluation losses                               19.8      12.6 
                                                  -----------  -------- 
 Profit / (loss) before FX revaluation 
  and taxation                                          390.8   (376.2) 
 Net financing expense (excluding Net FX 
  revaluation losses)                                     5.8      53.4 
 Depreciation of property, plant and equipment          118.9     105.2 
 Depreciation of right-of-use assets                     66.3      53.1 
                                                  -----------  -------- 
 EBITDA                                                 581.8   (164.5) 
                                                  ===========  ======== 
 

'Own Cash'

'Own Cash' comprises cash and cash equivalents and money market deposits and excludes advance customer deposits. It is included as an alternative measure in order to aid users in understanding the liquidity of the Group.

 
                                          2023        2022 
                                          GBPm        GBPm 
                                    ----------  ---------- 
 
 Cash and cash equivalents               955.2     1,047.5 
 Money market deposits                 1,669.5     1,181.0 
                                    ----------  ---------- 
 Cash and money market deposits        2,624.7     2,228.5 
 Deferred revenue                    (1,563.6)   (1,189.1) 
 Trade and other receivables              66.0        44.4 
                                    ----------  ---------- 
 'Own Cash'                            1,127.1     1,083.8 
                                    ==========  ========== 
 

Trade and other receivables relates to invoicing of amounts due from travel agents in respect of package holiday deposits and balance payments.

   7.   Market Abuse Regulation (MAR) Disclosure 

Certain information contained in this announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this announcement.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR UVRNROKUBRAR

(END) Dow Jones Newswires

July 06, 2023 02:00 ET (06:00 GMT)

1 Year JET2 Chart

1 Year JET2 Chart

1 Month JET2 Chart

1 Month JET2 Chart

Your Recent History

Delayed Upgrade Clock