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Jet2 books £388m balance sheet boost as jet fuel derivatives jump
The package holiday provider said the gain stemmed from favourable fair value movements in jet fuel derivatives after Middle East conflict pushed market pricing higher.
CityAM reports Jet2, an AIM-listed UK package holiday provider, recorded a £388 million balance sheet boost linked to rising jet fuel prices during the Middle East conflict.
The outlet said Jet2 avoided immediate hit-by-fuel-cost pressure because it had already locked in lower jet fuel prices with suppliers, so the increase in market costs during the conflict lifted the value of its fuel contracts.
According to CityAM, Jet2 attributed the extra income primarily to favourable fair value movements in jet fuel derivatives at the balance sheet date as market pricing rose following the escalation of the conflict.
CityAM also reported Jet2 posted a nearly £400 million boost from the jet fuel surge, with its shares rising 9.0% to 1,486p on Wednesday’s open and up 5.0% year to date at the time of publication.