Jet2 said it expects an 8% to 10% increase in profit before foreign-exchange revaluation and taxation for the year ending March 31 of between 560 million and 570 million pounds ($706.4 million-$719 million). The company had previously guided for a figure ahead of market expectations of 541 million pounds.

The boss of Jet2 has warned the holiday group's profit margins could come 'under some pressure' this year, amid higher costs and fragile consumer strength.

Jet2 shares fell in midday European trading after the London-listed leisure-travel group warned that its profitability next fiscal year could come under pressure. Shares traded down 11.50% at 14.00 pounds after the company said Wednesday that it faced inflationary input cost pressures and would incur additional operational costs to cover gaps in its peak summer flying program.