Flight Global reports that the low-cost carrier is seeing a boost in sales since its former rival folded. Moreover, Jet2’s parent company, Dart Group is set to receive year higher end of year profits due to the events.
Jet2 Reaps Benefits From Thomas Cook Demise
Earlier this week, we reported on how TUI may benefit from the collapse of Thomas Cook. However, fellow European airline, Jet2 is already seeing a positive impact on the back of last month’s events.
In a recent annual report, the firm said that it had seen an increase in demand over the year. This is in correlation to Thomas Cook’s struggle, which had started to get more serious during this period. The group added that it will continue to monitor the full impact over the next couple of months.
Altogether, for the previous financial year, package holidays played a huge part in the company’s profits. 49% of its passengers were customers of these products, a number which continues to rise. The operating profit for Dart’s leisure travel sector also increased by 63% during the year to just under $372 million.
“The increasing mix of package holiday customers is pleasing, as the longer duration, end-to-end holiday experience allows greater value to be added through product innovation and service at each point in the customer’s journey,” the company stated as per the Flight Global.
“This proposition lends itself to brand loyalty and retention and a better quality of recurring revenue and profitability, compared to the more impulsive, price-sensitive, shorter duration, flight-only product.”
Jet2 has seen great progress since operations began under its rebrand in 2003. In 2018, the Leeds/Bradford headquartered firm served over 1.2 million passengers during the whole year.
These travelers have 70 destinations to choose from via the company’s services. The majority of these locations are based in the Mediterranean, providing both summer and winter sun for holidaymakers. Furthermore, the business had recently added thousands of extra seats on its routes from Birmingham, Glasgow, Manchester and Newcastle this winter.
Despite healthy reporting, the business claims that it will remain cautious due to external factors. The travel industry is facing pressures due to fluctuating operating costs. Along with this, Brexit fast approaching, so there are concerns of how the pound will be impacted.
While the United Kingdom and the European Union still work out a deal, there is still uncertainty to how travel markets will be implicated. By playing it safe, Jet2 reduces the risk of seeing a similar fate to its former counterparts. Ultimately, the last year has seen various airlines struggle to cope with the pressures of expansion in a delicate climate.
Simple Flying reached out to Jet2 for comment on their reports but we had not heard back prior to publication. We will update with any further announcements.
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