Jet2 Shares Plunge 14% as Airline Lowers Profit Forecast Amid Slower Bookings
Jet2, the UK-based leisure airline, saw its shares tumble 14% on Thursday after the company warned that its full-year profits are likely to land at the lower end of market expectations. The airline attributed the downgrade to delayed customer bookings and uncertainty over seat sales for the upcoming winter season. Early in trading, shares dropped more than 20% before recovering slightly.
The company said that many travelers are booking later than usual, reducing visibility over summer and winter seat capacity. Jet2 also announced plans to cut the number of seats available for sale while keeping pricing attractive, a strategy aimed at maintaining profitability despite weaker demand. Analysts had previously expected earnings before interest and taxes (EBIT) to fall between £449 million and £496 million ($603–$667 million).
Travel stocks were the worst-performing sector in Europe on Thursday, falling 0.9% as investors reacted to Jet2’s announcement. Meanwhile, broader European markets showed mixed results, with Germany’s DAX up 0.3%, the U.K.’s FTSE 100 rising 0.15%, and France’s CAC 40 down 0.3%. In other sectors, French pharmaceutical giant Sanofi dropped 10% after disappointing results from a dermatitis drug study.
Investors are also closely monitoring U.S. trade developments, as former President Donald Trump has asked the Supreme Court to quickly hear an appeal challenging a lower court ruling that deemed most of his tariffs illegal. The appeal could have major implications for global trade and market stability, adding to investor caution in Europe and beyond.
Looking ahead, Wall Street is focused on upcoming economic data, including the ADP private payrolls report and jobless claims, ahead of Friday’s key jobs report. Economists predict slower job growth in August, which could influence market sentiment and give insight into the broader economic outlook amid ongoing uncertainty in the travel and financial sectors.
Source: cnbc