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British people “desperately” trying to get away from their gloomy day-to-day lives helped propel Jet2 to record passenger numbers and profits, the airline’s bosses have said.
Steve Heapy, chief executive of Jet2, told the Financial Times that the urge to “escape” from Britain had boosted passenger numbers to European destinations. The growth has come despite growing concerns about overtourism on the continent.
“I spend 50 weeks a year in this country and I want to escape it. People desperately want to get away . . . from their day-to-day lives,” he said.
Heapy was speaking as Jet2, which also sells package holidays, reported an 11 per cent increase pre-tax profits to £578mn in the year to March, with revenue and passenger numbers also hitting new highs.
“Many people in the UK see holidays not as an optional thing, not as something they may do, [rather] they see it as an absolute necessity. They see it as a right,” said Heapy, saying demand was strong across “all demographics”.
Jet2 said it would seek to capitalise on demand from younger and less well-off customers by offering more 2- and 3-star properties, self-catering options and hostels.
Gary Brown, Jet2’s chief financial officer, said: “Most people have only got one thing to look forward to ahead of next Christmas, that’s a holiday . . . that is getting away from the UK and all its gloom and dreary weather.”
However, the company’s shares fell 7 per cent by Wednesday lunchtime as it warned that passengers continued to book getaways closer to departure dates and that little winter capacity had yet been sold.
Flight-only net ticket yield per passenger fell 2 per cent to £119 as Jet2 offered promotions to fill the flights, marking a partial reversal of years in which it increased prices to cope with rising inflation.
The cost of the group’s package holidays, however, rose 5 per cent last year to £873 on average, as customers spent more on insurance for their travel in case “something goes wrong”, Heapy said.
Leeds-based Jet2, which flies to more than 75 destinations, said that “customers’ eagerness to get away from it all” meant that they were not deterred from travelling as long as pricing remained attractive.
The update comes as a backlash against tourism has escalated in European countries such as Spain, where an influx of visitors is stirring up so-called “tourism-phobia” by residents furious over soaring rents and other issues.
Heapy declined to comment on the overtourism issue, but noted that destinations including Spain, Portugal, Turkey, Greece, Cyprus and Italy were in strong demand.
