Jet2 Raises 2025 Profit Outlook Amid Rising Costs
UK-based Jet2, the nation’s second-largest airline by passenger numbers, has raised its profit forecasts for 2025 while warning that rising costs and delays in new aircraft deliveries could pressure its future margins. In a financial update released on February 19, 2025, Jet2 Group—comprising leisure airline Jet2.com and its in-house tour operator, Jet2 Holidays—confirmed a projected profit increase of up to 10%, with earnings expected to reach between £560 million and £570 million (approximately $711 million to $724 million) for the fiscal year ending in March 2025.
This improved profit outlook is being driven in part by the recent launch of two new operating bases. Jet2 has established new bases at Bournemouth Airport (BOH) and London-Luton Airport (LTN), which together will contribute over 700,000 additional seats to the carrier’s network. Overall, Jet2 projects that its 2025 summer capacity will see an 8.5% increase over 2023, offering a total of 18.6 million seats across its network. These expansions are expected to enhance connectivity, particularly for leisure travelers heading to popular summer holiday destinations.
However, the carrier also faces significant challenges. Jet2 has noted delays in the delivery of 14 new Airbus A321neo aircraft, which are key to its fleet modernization. Although the new A321neo jets are already demonstrating their strategic value in terms of improved operating economics, reduced emissions, and enhanced customer experience, the delayed deliveries will force the airline to incur additional operational costs to cover aircraft gaps during the peak summer flying period.
In its update, Jet2’s management also highlighted that the market is witnessing a trend of late bookings for summer holidays in 2025. For the departure months of April, May, and June, forward bookings are up by approximately 7%, though the overall average load factor at existing bases remains broadly flat. Notably, while bookings at the two new bases are promising, the average load factor at London Luton is materially lower than at established bases—likely because the sale for this base only commenced in November 2024. Additionally, package holiday bookings have seen a modest 4% increase, while flight-only passengers have grown by 19%, reflecting shifting customer preferences.
Jet2 also cautioned that macroeconomic pressures will continue to impact its performance. The airline faces “material cost increases” stemming from rising UK employer National Insurance contributions and higher National Living Wage rates, which have already resulted in a previously announced £25 million cost hit. Furthermore, mandated increases in the use of sustainable aviation fuel (SAF) are set to add more than £20 million in incremental costs, due to the significant price differential between SAF and conventional jet fuel. Additional operational cost pressures from hotel accommodations, aircraft maintenance, airport handling fees, and Eurocontrol charges are also expected.
Chief Executive Steve Heapy summed up the outlook: “We are very pleased with how the 2025 financial year is ending and our expected 8%-10% profit growth. However, with limited forward visibility and several cost headwinds, profit margins may come under pressure in the year ahead.” Heapy added that despite these challenges, Jet2’s unwavering customer-first focus and trusted service will continue to drive demand as travelers seek quality holiday experiences in the Mediterranean, Canary Islands, and across Europe.
With a robust expansion plan and a strong commitment to customer service, Jet2 remains confident in its ability to navigate the challenges ahead and continue delivering value in a highly competitive European leisure market.
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