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A low-cost airline at a bargain price

Its emergence as the UK's biggest tour operator and its popularity among its customers only enhances the investment case, and it's time to take advantage
March 7, 2024

Jet2 (JET2) has gone through a number of transformations in its relatively short history. The Aim-traded company started life as a Guernsey-based airline, set up in the 1970s to fly fresh flowers to the UK’s mainland. It was bought by former RAF stunt pilot Philip Meeson in 1983, who first grew it into a general cargo airline. It launched its first low-cost passenger service between Leeds Bradford Airport and Amsterdam in 2003.

Tip style
Value
Risk rating
Medium
Timescale
Medium Term
Bull points
  • Strong customer demand
  • Greater focus on high-margin package holidays
  • Trusted and established operator
  • Lowly valuation
Bear points
  • Departure of long-standing chair
  • Climate change risk

Jet2 is now the UK’s third-biggest airline behind easyJet (EZJ) and British Airways, and flew more than 16mn passengers in its 2023 financial year (management doesn't count Ryanair (IE:RYA) or Wizz Air (WIZZ) as direct rivals, as they're not UK-based). Jet2 mainly hops between Mediterranean beach resorts in the summer and ski slopes in the winter, with city breaks a year-round trade. It is set to open its 11th UK base at Liverpool John Lennon Airport this month.

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