Jet2 (JET2:AIM) £16.96

Gain to date: 4.5%

We included Jet2 (JET2:AIM) in our list of stocks to buy for 2025, noting an undemanding valuation and scope for expansion, and at first that looked like it might have been an error. 

WHAT HAS HAPPENED SINCE WE SAID BUY?

However, the package holidays provider provided a positive catalyst for the share price on 29 April by announcing a £250 million share buyback and confirming it expected its full year 2025 results to be in line with guidance.

The company sees a group profit before foreign exchange revaluation and taxation for the year ending 31 March 2025 of between £565 million and £570 million.

The buyback was a reflection of an extremely strong balance sheet. Total cash of £3.2 billion includes money taken from customers when booking holidays but even if we just look at its own cash this totals £1.1 billion as of 31 March 2025.

Jet2 also said at the end of April that it had launched new bases at Bournemouth and London Luton airports due to ‘encouraging’ demand.

WHAT SHOULD INVESTORS DO NOW?

Jet2 shares are now comfortably ahead of our entry point. The airline and package holidays provider seem to have got its strategy right when it comes to looking after its customers and growing its market share.

We think investors should hold on to the stock for now. Analysts at Canaccord Genuity said in a recent note that the company offers ‘strong customer trust’ and ‘flexibility at a predictable all-in cost.’

Adding: ‘[Jet2] holidays offer scope to deliver a more sustainable EPS (earnings per share) and expand achieved PE (price to earnings) as investors focus on the value of holidays.’

Canaccord sees its full year 2026 pre-tax profit outlook a ‘touch higher’ due to the company’s ‘fortress balance sheet’ and  ‘end-to-end’ customer care.

‹ Previous2025-05-08Next ›