Jet2 has seen its share price fall by over 14% in early trading after it warned that its full-year EBIT is set to be at the lower end of its expectations.

The airline and package holiday firm said that while its summer seat capacity increased by 8% year-on-year, it was reducing the number of seats on sale for its winter season from 5.8 million to 5.6 million as a result of a "less certain consumer environment".

Although Jet2 has dropped its seat capacity, the updated figure is still a year-on-year increase of 9% compared to winter 2024/25.

Jet2 added that with limited visibility, given the later booking profile and the remainder of summer and much of its winter capacity still to sell, its EBIT is expected to be in the lower end of its guidance, which ranges from £449m to £496m.

However, it did state that it "remains premature to provide definitive guidance" as to overall group profitability for the year to 31 March.

Chief executive officer at Jet2, Steve Heapy, said: "Although we are currently operating in a difficult market, we have a proven business model, a loyal customer base, a flexible approach to capacity management and of course our multi award-winning customer service. We believe that these factors provide the foundation for a solid financial result this year and for further profitable growth in the years to come."

Investment director at AJ Bell, Russ Mould, concluded: "Millions of people prioritise experiences over material goods, with foreign holidays high up the list of things they scrimp and save for. Such a trend should be positive for airlines and holiday companies, yet countless individuals are leaving it to the last minute to make a booking.

"Jet2 has once again bemoaned this situation, leaving it with cloudy rather than crystal clear earnings visibility. Management cannot keep their fingers crossed that sales will eventually come through; they need certainty given the expense in running a fleet of aircraft and a complex accommodation chain.

"Guidance that full-year earnings will be at the lower end of market forecasts has wiped out Jet2’s share price gains so far this year. It’s a disappointing setback for the business and has dragged down shares in other airlines including EasyJet and Wizz Air."

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