U.K.’s Jet2 shares soar on upbeat profit forecast and buyback plan

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Investing.com -- British airline Jet2 PLC (LON:JET2) shares climbed 14.9% after the company released a post-close trading statement indicating an expected profit before foreign exchange revaluation and taxation for the fiscal year 2025 (FY25) that could reach up to £570 million.

This forecast is at the upper end of their previous guidance range of £560 million to £570 million and aligns with the Visible Alpha consensus but is slightly above the Royal Bank of Canada’s estimate (RBCe) of £565 million.

The firm announced its intentions to initiate a share buyback program worth up to £250 million, a move reflecting confidence in its sustainable cash-generating business model and solid balance sheet.

Looking ahead to the fiscal year 2026, Jet2 expressed satisfaction with its progress thus far, although it noted limited visibility and a trend towards later booking profiles.

RBC analysts highlighted Jet2’s strong return on invested capital (ROIC) and return on capital employed (ROCE), which are projected to be around 14% in FY26E.

They also pointed out the company’s attractive valuation, noting that "Jet2’s integrated model has delivered a leading ROIC and ROCE (~14% in FY26E on RBCe) and customer experience. Despite strong credentials for growth and value creation, Jet2 trades on cheap EV valuation multiples in our transport coverage, and on ~7x FY25E PE."

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