Jet2 tipped for upside after package holiday firm shared positive financials

UBS sees more than 67% upside in Jet2 PLC (AIM:JET2) after the leisure airline and package holiday group guided full-year profit broadly in line with market expectations despite the cost of launching at Gatwick.

The bank has repeated a 'Buy’ rating and 1,790p price target on the shares, compared with a 1,070p closing price on 28 April.

Jet2 said profit before tax for the year to March 2026 is expected to land between £435 million and £440 million, against a consensus of £435 million. UBS said the update was positive, particularly as it came after £11 million of Gatwick start-up and promotion costs. The company also reported net cash of £2 billion and is close to completing its £100 million buyback.

Summer trading was more mixed in tone. Capacity is 7.7% higher, booked passengers are up 6.2%, and load factor is in line with last year, but UBS noted limited commentary on pricing and interpreted Jet2’s focus on being competitive as pointing to some pressure.

Fuel offers a buffer for the peak season, with 87% of summer fuel hedged at an average price of $707 per tonne. UBS, however, said there was no comment on winter trading or winter fuel hedging, leaving fuel price pressure as a potential downside risk to forecasts.