Jet2 shares dip despite strong first half

Jet2 shares (LSE: JET2) dropped 2.3% on Thursday after initially falling 4.7%, despite the airline and holiday company reporting a strong start to its financial year.

Revenue rose 24% to £4.41 billion in the six months to September 30, while pretax profit jumped 47% to £660.5 million. The company also raised its interim dividend by 33% to 4.0p from 3.0p.

However, Jet2 noted around £14 million of lost profit from air traffic control issues and natural disasters over the summer.

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The company said its full-year pretax profit should meet previous guidance of £480-520 million, up from £390.8 million last year.

Summer 2024 seat capacity is tracking 12% above this year, with “encouraging” bookings. The Leeds-based firm raised its interim dividend by 33% to 4.0p per share, reflecting the earnings outlook.

Jet2 shares are up 17% in 2023 and up 24% year over year.