Operating Margin

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Price: 1 269 GBX -2.08% Market Closed

Market Cap: £2.5B

6.2%

Declining

by 1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

6.2%

Operating Income

£460.2m

Revenue

£7.4B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

6.2%

Operating Income

GBX460.2m

Revenue

£7.4B

Peer Comparison

Country		Company	Market Cap	Operating Margin
UK		Jet2 PLC LSE:JET2	2.7B GBP	Loading...
US		Delta Air Lines Inc NYSE:DAL	44.4B USD	Loading...
US		United Airlines Holdings Inc NASDAQ:UAL	34.9B USD	Loading...
UK		International Consolidated Airlines Group SA LSE:IAG	19.4B GBP	Loading...
CH		Kinarus Therapeutics Holding AG SIX:KNRS	19.5B CHF	Loading...
US		Southwest Airlines Co NYSE:LUV	22B USD	Loading...
CN		Air China Ltd SSE:601111	153B CNY	Loading...
IE	R	Ryanair Holdings PLC LSE:RYA	15.4B EUR	Loading...
CN		China Southern Airlines Co Ltd SSE:600029	139.2B CNY	Loading...
IN		Interglobe Aviation Ltd NSE:INDIGO	1.8T INR	Loading...
CL		LATAM Airlines Group SA SGO:LTM	16.4T CLP	Loading...

Market Distribution

Min	-195 650%
30th Percentile	0%
Median	0.1%
70th Percentile	0.2%
Max	4 630.7%

Other Profitability Ratios

Jet2 PLC
Glance View

Economic Moat

None

Market Cap

2.5B GBX

Industry

Airlines

Jet2 PLC has carved its niche in the travel and leisure industry by tactically aligning its business operations around value and customer-centric service. Originally taking off as a cargo carrier over four decades ago, the company took a transformative leap into the passenger segment with Jet2.com, leveraging its Leeds Bradford base to capture the budget airline market. Today, it flies travelers to sun-soaked destinations across Europe, ensuring that the holiday doesn't just start at the destination but from the very moment passengers board its flights. Jet2 PLC's offerings extend beyond mere transportation; with Jet2holidays, it taps into the bundled holiday market, providing customers with an integrated package of flights, hotels, and local services entirely curated in-house. This holistic approach not only boosts customer loyalty but also offers Jet2 opportunities for cross-selling, amplifying its revenue streams. The operational genius of Jet2 lies in its stringent cost management and relentless focus on customer satisfaction, which feeds into its profitability. The airline industry is notoriously cutthroat, with razor-thin margins, yet Jet2 distinguishes itself through operational efficiency and fleet management, optimizing its routes and aircraft utilization. This efficiency translates into competitive pricing, which holds high appeal in the budget airline sector. Furthermore, Jet2's integrated holiday packages are a boon for margins—by packaging vacations, the company extracts value beyond just flights, securing efficiencies from economies of scale in hotel partnerships and ground operations. Revenue channels, therefore, encompass direct ticket sales, vacation bookings, and ancillary services like car rentals and onboard sales, synergized to create a robust and resilient business model capable of navigating the industry's inherent volatility.

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JET2 Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Jet2 PLC
LSE:JET2

Peer Comparison

Market Distribution

Other Profitability Ratios

Jet2 PLC
Glance View

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Jet2 PLC LSE:JET2