Jet2 shares up as plans share buyback, dividend hike amid revenue rise

Jet2 PLC on Wednesday reported record annual revenue as passenger numbers reached a new high, launching a new share buyback programme and raising its final dividend in response.

Jet2 shares were up 8.2% to 1,467.17 pence each on Wednesday morning in London.

The Leeds, England-based holiday airline and tour operator said revenue in the financial year that ended March 31 rose 4.3% to £7.48 billion from £7.17 billion, while pretax profit fell 7.1% to £551.0 million from £593.2 million and operating profit declined 1.5% to £439.6 million from £446.5 million, in line with expectations.

Flown passenger numbers were at a "record" 20.8 million in financial 2026, Jet2 said, up 5.4% from 19.8 million a year prior.

Jet2 proposed a final dividend of 12.4 pence per share, up 2.5% from 12.1p a year before. Jet2 had paid an interim dividend of 4.5p, up from 4.4p in financial 2025, so its total payout for financial 2026 will be 16.9p, up from 16.5p.

The company also announced a £250 million share buyback, with the first £125 million tranche starting immediately and expected to be completed by the end of 2026.

Jet2 said that summer 2026 capacity is 7.7% above the prior year and that reduced geopolitical uncertainty has driven strong booking momentum in recent weeks.

The company said it remains confident in its medium-term outlook, citing resilient demand, its expanding operations at London Gatwick airport, and what it called a differentiated customer proposition.

Chief Executive Officer Steve Heapy said: "We have been encouraged by performance for summer 2026 to date, despite the Middle East conflict leading customers to book closer to departure, a trend that is continuing across the peak summer period. The combined booked average load factor for the first four months of the year is currently 1.2 percentage points ahead of the prior year, reflecting our continued investment in load factor supported by attractive pricing, to take advantage of the strong late booking momentum.

"Our London Gatwick operation is performing ahead of our initial expectations...given this encouraging start, we now expect to operate seven aircraft at Gatwick in summer 2027."

The company will provide an update on peak summer trading at the annual general meeting due September 3.

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