Jet2, a leisure airline based in the United Kingdom, has exercised purchase rights for six Airbus A321 neo aircraft, raising the total number of firm orders for the class to 57.
On April 8, 2022, the travel company reported this in a trading statement on the London Stock Exchange. Additional alternatives exist for the airline, which may bring the total number of planes ordered to 75.
The Boeing 737 and 757 types make up Jet2’s fleet. However, as part of its fleet renewal, Jet2 ordered 36 A321 neos in August 2021, marking a departure from Boeing.
The operator placed a second order for 15 A321neos in October 2021, with delivery due between 2026 and 2029. Following a surge in bookings for winter 2021 and summer 2022, the company’s total firm order tally increased to 51 aircraft.
Early 2022 saw the loosening of UK travel regulations, resulting in good conditions for the travel group ahead of summer 2022. Bookings surged when the limits were lifted, according to the trading update, and average load factors in February and March 2022 were around typical levels.
Jet2 announced that it has 14 percent more seat capacity available for the summer of 2022 than it did in the summer of 2019.
It said it was seeing “booking momentum accelerating, customer confidence continuing to grow and pricing robust, as customers treat themselves to their long-anticipated and well-deserved holidays.”
In a nod to recent flight cancelations seen across the UK, which have hit Easter travel plans for many, Jet2 said it had “worked hard” to plan for the recovery and invested early. “We also self-handle at many of our key bases and are therefore not reliant on third parties for these aspects of our operations,” it added.
The airline anticipates a loss before tax of between £378 million and £383 million ($493 – $499 million) for the fiscal year ending March 31, 2022.
As of March 31, 2022, the carrier has a total cash balance of £2.23 billion and a strong Own Cash position of £1.08 billion (excluding customer advance deposits).
Jet2 finds itself in a strong position ahead of summer as the industry grapples with rising oil and jet fuel prices. The airline revealed that its jet fuel costs are 95% hedged for summer 2022 and 65% hedged for winter 22/23.
On July 7, 2022, the airline will release preliminary results for the fiscal year ending March 31, 2022, as well as more specifics about summer 2022 trading.
