DAVY VIEW

Jet2 has issued a trading statement ahead of its AGM today. The company has highlighted a pronounced late booking environment, noting package holiday pricing continues to display a modest increase while net ticket yields for the flight-only product have become increasingly attractive. The passenger growth suggests a mix shift with more growth in the flight-only segment. The company has given a broad consensus guidance range for EBIT of £449-496m (Davy: £483.5m) for FY26 and it expects to be towards the lower end of this range. We expect consensus to move down towards the lower third of the range. Fundamentally, Jet2 remains the package holiday leader and will grow profitability (FY25 EBIT: £446.5m) in a more challenging environment.