Jet2 warns FY27 profit may miss expectations by up to 10% due to Gatwick costs
Company expects FY26 profit to meet forecasts despite £10 million in Gatwick expenses
Jet2 has expanded capacity by 8% for Summer 2026, adding 20 million total seats
More than 75% of FY27 fuel requirement is hedged at favorable rates
Jefferies maintains 'buy' rating with 2,100 pence price target
📖 Full Retelling
British package holiday operator Jet2 Plc warned on Wednesday that operating profit for the year ending March 2027 could fall short of market expectations by as much as 10% due to costs associated with its new London Gatwick base, while maintaining that full-year profit to March 2026 would meet current forecasts despite absorbing approximately £10 million in Gatwick-related expenses. The company's announcement comes as it invests heavily in expanding its presence at London Gatwick, which launched on March 26, with Jefferies estimating FY27 operating profit at approximately £400 million, significantly below the company-compiled consensus of £444 million. Despite the profit warning, Jet2 reported strong booking performance with reservations running 7.9% ahead of the prior year, including more than 260,000 passengers already booked at Gatwick ahead of its launch, and package holidays maintaining approximately 66% of total bookings share. The company has added 8% more seats for Summer 2026, reaching 20 million total, with new bases at Bournemouth, London Luton, and London Gatwick contributing 1.1 million of those additional seats, while established bases grew at 2%, adding 0.4 million seats.
🏷️ Themes
Financial Performance, Capacity Expansion, Cost Management, Market Position
Fuel hedging is a contractual tool some large fuel consuming companies, such as airlines, cruise lines and trucking companies, use to reduce their exposure to volatile and potentially rising fuel costs. A fuel hedge contract is a futures contract that allows a fuel-consuming company to establish a f...
Warning declaration issued by a listed company to investors through a stock exchange
A profit warning is a warning declaration issued by a listed company to investors through a stock exchange. It warns investors that the profit of the company in the coming quarter will significantly decline when compared with that of the same quarter of previous year, or the company may even make a ...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices rise 1% as tariff jitters aid haven demand; silver, platinum rally AMD stock surges 14% on Meta AI partnership deal Bitcoin slips, wipes out 50% from October record high at session low Wall Street ends higher on tech rebound ahead of State of the Union address (South Africa Philippines Nigeria) Jet2 Plc warns FY27 profit may miss by 10% on Gatwick costs By Navamya Acharya Author Navamya Acharya Stock Markets Published 02/25/2026, 03:45 AM Jet2 Plc warns FY27 profit may miss by 10% on Gatwick costs 0 JET2 -1.83% Investing.com -- Jet2 Plc (LON:JET2) warned on Wednesday that operating profit for the year ending March 2027 could fall short of market expectations by as much as 10%, as costs tied to its new London Gatwick base weigh on earnings, even as the British package holiday operator said full-year profit to March 2026 would meet current forecasts. Follow real-time stock swings and analyst updates on InvestingPro - up to 50% off Jefferies estimated FY27 operating profit at approximately £400 million, against a company-compiled consensus of £444 million, a gap of roughly £44 million, after accounting for £40-50 million in Gatwick investment costs. The broker maintained a “buy” rating with a 2,100 pence price target. Jet2 shares closed Tuesday at 1,287 pence. For the year ending March 2026, the company said it expected operating profit in line with consensus of £439 million, absorbing approximately £10 million in Gatwick promotional and resourcing startup costs. Chief executive Steve Heapy said the company was "very pleased with how the 2026 financial year is concluding," adding it remained "committed to pricing that is attractive and represents real value to our customers." That commitment to pricing is where analysts see risk. Jet2 said it was "investing in load factor" for Summer 2026, language that points to yield dilution to fill capacity, while marketing spend is being "reinvested into pricing...
