Jet2.com and Jet2holidays announced (03-Jan-2013) the promotion of Steve Heapy to CEO. Joining in 2009, Mr Heapy has been instrumental to the development of both Jet2holidays and Jet2.com as MD and CCO. Company founder, Philip Meeson, will take on the position of executive chairman and will continue to play an integral role in Jet2.com and Jet2holidays. Mr Heapy said, “Our priority as ever remains focused on delivering holidays to the best sun, city and ski destinations and making sure our loyal customers have the best choice and service available. 2012 has been a great year for both business and we are going to have some exciting things planned for 2013.” [more - original PR]
Jet2.com announces new CEO
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Jet2.com: LCC airline's summer may be cooled by new Boeings, despite parent group's profit leap
Jet2.com is more summer-biased than almost any European airline, in spite of a capacity cut last summer. This reflects its strong leisure focus and its interdependence with the tour operator Jet2holidays. In the year to Mar-2016 Jet2holidays supplied 40% of the UK LCC's passengers, up from 17% in FY2013, since when it has been responsible for all of the airline's traffic growth.
Dart Group owns and runs both Jet2.com and Jet2holidays as the single business segment Leisure Travel (95% of group operating profit). The underlying operating profit of the Leisure Travel segment more than doubled for the year to Mar-2016, reaching the highest margin since FY2009, thanks to yield growth and increased sales of higher-end package holidays.
Strong advance sales insulate Jet2.com and Jet2holidays from the impact of Brexit in the short term. Nevertheless, their strong dependence on summer leisure demand exposes them to any volatility that may result from growing geopolitical and macroeconomic risks. Moreover, an order for 30 new Boeing 737-800s marks a departure from Jet2.com's strategy of buying and operating old aircraft that are close to being fully depreciated. This may increase the pressure on the airline to deploy its assets on a more year-round basis.
Jet2.com: growth mainly in Spain and Manchester. Overcapacity an issue, and competition strong
The strongly seasonal nature of Jet2.com's schedule and the financial performance of the airline and its parent Dart Group were examined in a Jul-2016 analysis report by CAPA. That report also noted that all of the increase in passenger numbers since the year to Mar-2013 was attributable to traffic booked via Dart Group's package holidays business – Jet2holidays.com.
This report looks in some detail at Jet2.com's network and how it has changed in the three years since summer 2013.
Over the past three years Jet2.com has increased its peak summer weekly seat capacity by one third. By airport, the biggest share of this incremental capacity has been at Manchester. By destination, the lion's share of its growth has been to Spain, where there is now a capacity glut. Its markets have become increasingly competitive – not only due to other LCCs, but also because of the growth of airlines owned by integrated leisure groups such as TUI and Thomas Cook.