Skift Take

This strategic order guarantees a much larger fleet in the next decade, and is as strong a signal as any that the travel company predicts demand for package vacations will just keep growing and growing.

British travel company Jet2 said it ordered 35 new Airbus A320neo aircraft worth $3.9 billion at list prices, with an option to extend this to 71 aircraft, as it bets that demand for package holidays will keep growing.

The new order follows Jet2’s deal to buy 36 slightly bigger A321neo in 2021, its first purchase from Europe-based Airbus after it switched loyalties from U.S. planemaker Boeing.

Jet2 said in its statement on Tuesday that the initial 35 aircraft are due to be delivered between 2028 and 2031 and that it had negotiated a significant discount from the list price. It said it planned to finance the aircraft from internal resources and debt.

The new deal brings Jet2’s total number of firm ordered aircraft to 98, with the potential to extend this to 146, which it said would help grow the business as well as refresh its existing fleet.

Despite severe economic headwinds, airline and holiday bosses have recently said that consumer appetite for travel remains strong.

Jet2 specializes in package holidays, all-in deals involving flights, hotels and sometimes meals, and these tend to gain in popularity when people tighten their belts as they offer certainty over prices. The Leeds-based company said it was confident about future demand.

“The order reflects our confidence that we have a much-loved product built on sector leading customer service which we can continue to grow,” said Jet2 executive chairman Philip Meeson.

Jet2 said the deal gave it certainty of supply of aircraft into the next decade.

(Reporting by Sarah Young; editing by James Davey)

This article was from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].

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Tags: a320neo, airbus, jet2, package holidays, uk

Photo credit: An Airbus A330 aircraft operated by Jet2. [email protected] / Flickr

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