Jet2

Website: Jet2
Index: AIM
EPIC: JET2
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Airlines
Market Cap: £2.44B
Payout Frequency: Semi-Annual

Jet2 Dividend Analysis and Summary

Dividend Details

Dividend type: Interim
Dividend per share: 4.5p (up 2.3% vs 4.4p)
Ex-dividend date: 08/01/2026
Record date: 09/01/2026
Payment date: 13/02/2026 (note: one reference in Note 7 states 13/02/2025, which appears to be a typo; the narrative confirms 2026)
Currency: GBP

Context and Support

HY26 basic EPS: 300.4p (+8% YoY); interim dividend covered many times over.
HY26 free cash flow: £369.7m; net cash (after borrowings and leases): £2.09bn; cash and money market deposits: £3.35bn.
Operating profit: £715.2m (+2% YoY); EBIT margin broadly stable at 13.4%.
Capital returns: completed £250m buyback (Apr–Oct 2025); new on-market buyback up to £100m announced.

Focused Analysis: Sustainability and Growth

Sustainability: The interim payout is very small relative to earnings and cash generation. With robust liquidity and strong H1 profitability, the 4.5p dividend appears highly secure even allowing for seasonal H2 losses typical in this business.
Growth trajectory: Dividend growth is modest (+2.3% YoY), consistent with Jet2’s conservative approach. The Board’s preference for buybacks alongside growth capex suggests ongoing incremental dividend increases rather than step-changes.
Financial and capital allocation support: Continued profitability, sizeable free cash flow, and net cash balance underpin dividends. Management is prioritising disciplined growth (fleet, infrastructure, and the London Gatwick launch) while returning capital via buybacks—indicative of confidence and capacity to fund both investment and distributions.

Structural/Policy Developments Relevant to Future Dividends

New base at London Gatwick from March 2026; start-up costs in FY26–FY27, with Gatwick expected to reach profitability in FY29. Near-term investment may modestly weigh on free cash flow but is strategic and phased.
Share buybacks: £250m completed in 2025; additional £100m announced. Signals a capital return mix favouring buybacks, which could enhance EPS and support dividend capacity per share.
Balance sheet actions: Convertible bond fully repaid; EBT share purchases eliminated potential dilution—both supportive to per-share metrics and dividend headroom.

Risks and Flags to Dividend Stability

Seasonality and late bookings reduce forward visibility; H2 losses typical, though current payout is immaterial versus earnings.
Cost pressures: SAF mandates and wage/NIC increases; ACMI substitution in FY27 raises short-term operating costs until A321neo deliveries ramp (by 2028).
Macro and competitive environment: Price-sensitive consumers and promotional pricing could pressure yields; however, capacity discipline and hedging (USD, fuel, EUR, carbon) provide mitigants.
Disclosure note: Minor inconsistency in Note 7 payment date (states 13 Feb 2025) vs main text (13 Feb 2026). Ex-div and record dates clearly align to 2026, so cash timing should be 13 Feb 2026.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
02/01/2025	07/02/2025	Interim	4.40p	GBX
18/09/2025	22/10/2025	Final	12.10p	GBX

Total (Annual Dividends Per Share): 16.50p

Dividend Yield = Annual Dividends Per Share (16.50p) ÷ Share Price (1237p) = 1.33%

Ex Dividend Date	Payment Date	Type	Amount	Currency
08/01/2026	13/02/2026	Interim	4.5000p	GBX
18/09/2025	22/10/2025	Final	12.10p	GBX
02/01/2025	07/02/2025	Interim	4.40p	GBX
19/09/2024	23/10/2024	Final	10.70p	GBX
28/12/2023	02/02/2024	Interim	4.00p	GBX
21/09/2023	25/10/2023	Final	8.00p	GBX
29/12/2022	03/02/2023	Interim	3.00p	GBX

Year

Number of Shares:

Payment	Paid	Amount
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