European Aviation Daily: Icarus – 14 July 2026

Research evidence excerpt

European Aviation Daily: Icarus – 14 July 2026

he sector, but the 90% fuel

hedging for FY27 should substantially moderate this risk. Consumer appetite for travel remains

strong, our most recent demand tracker analysis suggests travel spending trends have inflected

for the better and M&A activity in the industry tells us package travel, that looked a potential

anachronism ripe for disintermediation five years ago, is increasingly relevant both for investors

as well as consumers.

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Jet2: Issues for debate post FY26 results(opens in a new tab)

Key issues include the health of summer demand, expansion into Gatwick and capital

allocation.

What's the debate? This report provides a set of issues for investors to discuss with Jet2

management team after FY26 results on 8 July 2026.

Health of summer demand and Gatwick expansion top the agenda, followed by capital

allocation: Summer'26 program growth of 8%, bookings ahead 7.1% with flight only pricing

down MSD while package pricing being stable is the latest trading update. How booking

momentum evolves since the end of May and the outlook for the peak lates market is

important. Jet2's expansion into Gatwick is also key as the company plans more expansion in

the southern UK. Capital allocation is a key topic as capex continues to grow. New £250m SBB is

encouraging.

View and valuation: We rate the stock Overweight with a price target of £20.0. We think

consumers continue to prioritise travel relative to other discretionary expenditure options.

Within travel, packages continue to outperform other travel offerings, attracting consumers on

value, regulatory protection and simplicity of booking. In general, we admire the Jet2 business