Kepler Cheuvreux initiated coverage of Jet2 with a buy rating and a 2,000 pence target price, citing signs of margin recovery in the British airline and package holiday group despite weaker volume assumptions.
The broker’s FY28 earnings forecast is 5% above consensus, driven by improved pricing power and cost discipline. Adjusted EBIT is projected to decline 43% to £252 million in FY2027 due to softer demand and elevated energy costs, before rebounding to £430 million in FY2028. Kepler’s adjusted EPS estimates stand at 133.97 pence for FY2027 and 213.50 pence for FY2028, compared with consensus averages of 197.6 pence and 228 pence, respectively.
Jet2’s financial position remains robust, with cash holdings of £1.19 billion projected for FY2026. The company’s southern household penetration remains low at 4.5%, compared with 13.4% elsewhere, while Gatwick’s early package mix has outperformed expectations.
Shares rose more than 8% on August 7, 2026—their largest single-day gain since April 2025—following company statements attributing a booking momentum rebound to easing geopolitical tensions. Booked-to-date passengers for summer 2026 increased 7.1%, while average load factors for the first four months of the year were 1.2 percentage points higher than the prior year. Summer 2026 on-sale capacity was 7.7% ahead of the same period last year.
Jet2 reported a 4% rise in revenue to £7.48 billion for the year to March 2026, though operating profit dipped 2% to £439.6 million and pre-tax profit fell 7% to £551 million. The board declared a final dividend of 12.4 pence per share and announced plans for an on-market share buyback program of up to £250 million, expected to conclude by May 31, 2027.
