This airline's turbulent share price offers an expensive lesson in panic selling
Jet2's recent share price performance highlights why investors in high-quality companies should never engage in panic selling.
In February, the airline and package holiday company released a trading update that stated its concerns regarding profit margins amid rising costs and an uncertain consumer environment. The firm forecast a pre-tax profit of £560m-£570m for the 2025 financial year, which was in line with previous guidance to beat market expectations of £541m. Its shares nevertheless slumped by 11pc on the day of the trading update's release as investor sentiment materially declined.
Towards the end of April, however, the company released another trading update that prompted a resurgence in investor sentiment. It confirmed that pre-tax profit is expected to be £565m-£570m for the 2025 financial year, which represents a 9pc rise versus the prior period.
Alongside a relatively upbeat assessment of the company's prospects for the 2026 financial year, with price rises helping to offset cost increases, the second trading update prompted a share price surge of 16pc on the day of its release.
Investors who sold out of Jet2 in panic after the first trading update in February will therefore have missed out on the stock's subsequent recovery following the second trading update in April. In Questor's view, they are likely to further miss out on the company's additional growth over the coming years.
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