Jet2 Shareholder Payouts
Jet2 Achieves Record Revenue and Passenger Numbers, Boosting Shareholder Returns
Key Points
Jet2 also paid an interim dividend of 4.5p, up from 4.4p in financial 2025, bringing the total dividend payout for FY2026 to 16.9p per share.
The £250 million share buyback comprises an initial £125 million tranche starting immediately and is expected to be completed by the end of 2026.
Jet2 reported that 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.
Jefferies maintains a Buy rating on Jet2 with a price target of 1,800 pence, citing a favorable operating environment and potential FY27 upside, with valuations around 10.3x FY27E and 6.6x FY28E.
Jet2’s passenger mix shows a 15% rise in flight-only travellers to 7.64 million, along with a 1% uptick in package holidays to 6.62 million.
Jet2 posted record annual revenue of £7.48 billion for the year to 31 March 2026, up from £7.17 billion the year before, as the budget holiday operator flew a record 20.83 million passengers, according to MarketScreener. The strong topline growth came alongside a £250 million share buyback and a raised dividend, sending shares higher.
Despite the revenue record, pretax profit fell about 7% to £551 million. Jet2 blamed £11 million in start-up costs at its new Gatwick base, plus roughly £50 million in higher employment taxes and sustainable aviation fuel charges, MarketScreener reported.
Record Passengers and a £250 Million Buyback Signal
Jet2 announced a £250 million share buyback, with the first £125 million tranche starting immediately and set to finish by the end of 2026, according to MarketScreener. The company also raised its final dividend to 12.4 pence per share. Combined with an interim dividend of 4.5 pence, the total payout for the financial year reaches 16.9 pence per share.
The group ended the year with net cash of about £2.01 billion, giving it a strong financial base to fund both the buyback and future growth. Analysts say the buyback signals real confidence from management in the company's outlook.
Higher Costs Dent Profits Despite Passenger Growth
Jet2's profit dip was entirely cost-driven. The company absorbed £11 million in one-off costs to launch flights from London Gatwick. On top of that, employment taxes and sustainable aviation fuel — a greener but pricier jet fuel — added around £50 million to the bill. These pressures pushed pretax profit down from roughly £592 million to £551 million.
Passenger numbers told a more positive story. Flight-only travellers rose 15% to 7.64 million. Package holiday bookings edged up 1% to 6.62 million. Total flown passengers hit 20.83 million, a new company record, MarketScreener reported.
Summer 2026 Bookings Running Ahead of Last Year
Jet2 said summer 2026 capacity will grow 7.7% year on year. Booking momentum is strong. The combined booked average load factor — the share of seats already sold — is running 1.2 percentage points ahead of the same point last year. That suggests healthy demand heading into the peak holiday season.
The new Gatwick base is a key part of the growth plan. Jet2 has long focused on regional UK airports. Adding Gatwick opens a large new pool of travellers in southeast England. Management said the differentiated holiday offer — with high service standards — gives it an edge over rivals at the busy hub.
Analysts See Upside as Valuations Stay Attractive
Jefferies kept its Buy rating on Jet2 with a price target of 1,800 pence. The bank cited a favorable operating environment and the potential for earnings upgrades in financial year 2027. On current forecasts, the stock trades at around 10.3 times FY27 earnings and 6.6 times FY28 earnings — relatively cheap for a business growing at this pace.
The buyback adds another layer of appeal for investors. By reducing the number of shares in issue, earnings per share should rise even if overall profits stay flat. Combined with the dividend raise, Jet2 is clearly focused on rewarding shareholders while it continues to expand, according to MarketScreener.
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