Jet2 orders 35 Airbus planes for £3.4bn to meet travel demand
Jet2 has ordered 35 A320 neo aircraft for $3.9bn (£3.4bn) from Airbus as it remains confident demand for package holidays will continue to surge over the next decade.
The deal comes on the heels of Jet2 placing an order for 36 A321 neo last year – its first purchase from Airbus after years of loyalty to Boeing.
The low-cost carrier announced today that, under the agreement with Airbus, the order could be extended to up to 71 planes, for a total value of $8bn.
“We are delighted to build on our existing relationship with Airbus and to have placed this additional aircraft order which provides the company with certainty of supply well into the next decade,” commented executive chairman Philip Meeson.
Despite inflationary pressures and the cost-of-living crisis biting into customers’ pockets, Jet2 bosses have recently said consumer appetite for travel remains high.
Meeson recently said that winter 2022/2023 forward bookings were “satisfactory”, with average load factors matching 2019 levels.
Sophie Lund-Yates, analyst at Hagreaves Lansdown, told City PM Jet2’s order was “a bold hope” amid the current economic environment.
“On the other hand, Jet2’s position as a lower-cost option for holiday makers, including families, means it could be better placed to encourage people to fly,” she added.
“One thing’s for certain, and that’s uncertainty in travel demand, so this will definitely be one to monitor.”