Jet2 Announces Staff Reductions in Spain Amid Operational Review
Jet2, a leading airline based in the United Kingdom, has announced plans to reduce its workforce in Spain following a comprehensive review of its operations within the country. A spokesperson for the airline confirmed to ch-aviation the difficult decision, which affects a portion of its 996 employees stationed across several Spanish destinations, including Palma de Mallorca, Alicante, Tenerife Sur, Gran Canaria, Lanzarote, and Fuerteventura.
The restructuring will impact roles across resort flight check-in, flight deck, and cabin crew positions. The spokesperson expressed the company’s regret over the proposed redundancies, stating, “We deeply regret these proposed redundancies, and we will be consulting with appropriate representatives of the affected colleagues to ensure that all options are fully considered.” This move comes as part of Jet2’s strategic assessment aimed at optimizing its operational efficiency and adapting to the changing dynamics of the aviation industry.
Jet2’s presence in Spain is significant, with operations spanning 13 destinations, including six on the mainland, three in the Balearic Islands, and four in the Canary Islands. The airline’s resort flight check-in service is notably active in the Canaries, while flight deck and cabin crew roles are predominantly based in Palma and Alicante.
The decision to reevaluate its staff base in Spain follows remarks made by Jet2’s CEO, Steve Heapy, in January. He indicated the airline’s growth prospects in Spain would be contingent on Spanish airport operator AENA’s decision regarding a proposed 4% tax increase, highlighting the financial pressures faced by the aviation sector.
Despite the challenges, Jet2 plc, the parent holding company of Jet2, reported a 24% increase in annual revenue to GBP4.4 billion (approximately USD5.6 billion) for the six months ending September 30, 2023. The period also saw a significant profit before taxation of GBP496 million (around USD628 million), marking an improvement from GBP356 million (USD450 million) in the corresponding period of 2022. Additionally, the airline achieved a 7% increase in seat capacity and maintained an average load factor of 90.7%, mirroring its performance in 2022.
Looking ahead, analyst projections on Seeking Alpha anticipate Jet2 plc’s annual revenue to reach GBP7.93 billion (USD10 billion) for the fiscal year ending March 2024 and GBP9.03 billion (USD11.4 billion) for the following year. This optimistic outlook follows the airline’s revenue of GBP5.03 billion (USD6.4 billion) and an operating profit of GBP394 million (USD500 million) in the full year 2023, a significant recovery from a loss of GBP323.9 million (USD410 million) in the prior fiscal year. The announced workforce adjustments in Spain are part of Jet2’s broader strategy to ensure long-term sustainability and competitiveness in the global aviation market.