DAVY VIEW

Jet2 has announced that it expects to report FY26 operating profit of £435-440m, in line with market expectations (Davy: £439m, VA: £437m). The balance sheet is in good shape with £3.3bn total cash, £2bn in net cash after £363m was returned to shareholders over the past year; we note no further buy back announcement today. For summer ’26 (H1 FY27), Jet2 sees a late booking profile and while Q1 load factors are in line with the prior year, there is limited visibility on Q2 ‘peak summer’ due to geopolitical uncertainty. In line with previous messaging, the company continues to invest in the load factor and remains fully committed to attractive pricing. It is well hedged for the summer with 87% of requirements hedged at $707pmt. Current VA consensus for FY27 is £399m (Davy: £416m), and we expect consensus to move downwards by >£120m (30%) given pricing, cost and fuel environments as a result of the Middle East conflict.