Jet2 Share Discussion Threads

[diviincomesearch] 12/3/2024 20:27

I’d almost prefer share buybacks at this point rather than dividends.

Even a 3% divi isn’t going to turn the dial much, but if there is plenty of cash on the balance sheet and the share price is ‘undervalued’ then I’m happy for them to proceed that way.

[havinthelasttoast] 12/3/2024 19:06

Currently, AIM is widely unpopular.

Some airlines are trading at even lower multiples, yet this is the only one I’ve noticed with a net cash position. The company is managed exceptionally well, almost like a family business, possibly with excessive caution. They’re on track to amass 3 billion in net cash over the next two years at the current rate. It’s plausible to think the “founder”; prefers capital gains over dividends to avoid high dividend taxes, or perhaps the cautious approach is a response to Covid.

Despite its seemingly absurd valuation, when comparing a few airlines, the price-to-earnings and free cash flow relative to debt and net cash stand out impressively, paralleling our remarkable growth. We’re dominating the prime market, and public dissatisfaction with Ryanair is growing; my personal frustrations include the discomfort of standing in the heat waiting for a bus without air conditioning at Faro. I believe there’s a substantial segment of the UK middle class desiring more than what budget airlines offer, and Jet2’s future seems incredibly promising to me.

Therefore, if you share my belief that in two years, they will match their current market cap with net cash, and debt will be a minimal multiple of profit, then investing in their stock seems like an exceptionally wise choice. Additionally, alternative data I’ve accessed indicates their growth is accelerating rapidly.

[srichardson8] 12/3/2024 18:53

I have been trying to understand why the share seems so undervalued, excluding the effects of the fairly common aversion to the cyclicality of travel, the generally low rating of airlines and their sesitivity to the price of air fuel. My conclusion is that the modest dividend is a fairly major factor.

[havinthelasttoast] 12/3/2024 16:51

They have grown massively which you will see in next update.

Huge business far too small a market cap. In 2 years they will have the same net cash as their market cap

I think Covid has made them very cautious because they could be far more generous with divs. They have 1.85b of net cash and are making about 600m FCF per year.

[tp6] 12/3/2024 15:37

Growth.... Heck they have already seen off Monarch and Thomas Cook, and from a standing start ploughed past TUI - all the time keeping the balance sheet sensible and driving alot of repeat business.Replacing smaller aircraft with larger versions is the easiest way to maximise into the slot constrained airports, they are doing that.It's a point to point leisure airline, major hub routes of no benefit. Stick to what they know and do well.

[havinthelasttoast] 12/3/2024 12:11

What I like about EasyJet compared to Jet2 is I am always running late and have never missed a flight with EasyJet.

With jet 2 they are on time so no messing, I’ve never left on time with Ryanair and EasyJet so suits my last minute rush lol.

Different level of service with jet2 and now with all the extras for cabin bags etc jet2 is actually often a cheaper option anyway. I live in Portugal and it’s well connected to faro. Unfortunately not all year.

[angus mcoatup] 12/3/2024 12:07

Same as Alicante and Palma.

[angus mcoatup] 12/3/2024 12:05

Malaga Airport is maxed out already with air traffic.

[dunns_river_falls] 12/3/2024 11:59

More daily flights to Malaga + other common hotspots would be a quick win. Only one Jet2 flight from the south of UK in Summer season to Malaga vs Easyjet's 10 flights. I never want to fly Easyjet, but sometimes its the only option.

[angus mcoatup] 12/3/2024 11:46

They could fly to more European hub airports. Pick up the city breakers as well as the intercontinental travelers flying with legacy airlines also business people.

[snorkelparker] 12/3/2024 02:45

seems to be holding up OK..hopefully another leg up..but will a small incremental gain in profit bring much ? ..will PM sell this announcement? love to know if plans to leave the AIM or expand European business base ..

[bigbigdave] 11/3/2024 09:42

Just taking a break, up 40% since early November

[castleford tiger] 11/3/2024 08:24

March looks like being above forecasts. Small upgrade on the last fugues to come ( is my view)
Not sure why we are stuck at £14 but it will break up.
Tiger

[havinthelasttoast] 07/3/2024 19:00

Although thinking on it.

What’s the difference because he is selling which means he has capital which I assume he will put most of in a trust.

Pretty sure he can put the shares in a trust now. No point over thinking it but doesn’t make a lot of sense for the company to stay in aim.

[havinthelasttoast] 07/3/2024 18:45

Assume he is old then.

Might explain him offloading some shares and his recent change of position. One of the risks is he has a lot more dumping to do

[eigthwonder] 07/3/2024 17:27

AIM listing and the IHT implications are probably determined by Philip Meeson and until his holding is resolved I guess it won't change.

[davebowler] 07/3/2024 16:46

IC summary-
Jet2 is forecasting pre-tax profit before currency movements of between £510mn and £525mn this year, which would be almost double its pre-pandemic peak and an increase of more than 30 per cent on last year. Cash is also abundant, with net cash (excluding leases) rising by 46 per cent to £1.82bn in the first half of FY2024.

And yet over the past 12 months, Jet2’s share price has only edged up by 5 per cent. Little wonder, then, that it recently popped up on the IC’s Alpha screen looking for UK Aim companies offering growth at reasonable price.

[havinthelasttoast] 07/3/2024 16:36

IC article just out.

[havinthelasttoast] 07/3/2024 16:35

Yeah it’s dynamic prices. They constantly changing up and down so an extra 5 percent on what exactly. It’s a marketing tool.

The company need to reconsider being on aim. I know they are in IHT funds but for such a strong company with so much cash we need to join the big boys so we can get proper investment funds in.

[tp6] 07/3/2024 16:28

The discount possibly puts a little pressure on ryanair. They are short of aircraft, jet2 aren't.It's also a discount on the price "you thought" you might have to pay. Just like DFS and others..

[havinthelasttoast] 07/3/2024 08:41

The point is still the same regardless.

The increase in discount is 5 percent for April and may. Perhaps that segment needed a push. Business is flying as you will see in a few short weeks. The web data is never wrong :)!

[fozzie] 07/3/2024 08:34

You also get an extra 5% if you use your myJet2 account, hence 20%. I have not seen Jet2 aggressively target the market like this for summer bookings in a few years and Jet2 have always been 20% plus more expensive than Ryanair. My summer flight to Faro was £210 return from LBA, this was £270 last year for the same dates. Ryanair this year was £260, last year £155