Deutsche Bank lowers Jet2 stock price target on flight-only pricing pressure

Published 05/09/2025, 11:54
Deutsche Bank lowers Jet2 stock price target on flight-only pricing pressure

Investing.com - Deutsche Bank has lowered its price target on Jet2 plc (LON:JET2) to GBP20.59 from GBP21.50 while maintaining a Buy rating on the stock.

The bank cited pressure on flight-only pricing as a key factor in its decision, noting that while package holiday pricing continues to show modest increases, flight-only fares have become "increasingly attractive" - indicating lower pricing in this segment.

Jet2’s summer seat capacity remains at 18.5 million, up 8% year-over-year, unchanged from its July 9 update. Within this figure, package holiday customers increased 2% while more price-sensitive flight-only passengers jumped 17%, resulting in approximately a 3 percentage point year-over-year decline in package holiday mix.

In response to pricing pressures, Jet2 has slightly reduced its winter seat capacity from 5.8 million to 5.6 million seats, Deutsche Bank noted.

The company expects its March 2026 EBIT to be "towards the lower end of the consensus range" of £449-496 million, which still implies some year-over-year growth compared to the £446 million reported for fiscal year 2025.

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