Jet2 shares have fallen sharply after it cut its winter flight capacity and warned profits would be hit as families scale back getaway plans, write Jane Denton and Emily Hawkins.

Britain’s largest package holiday operator said it would trim seats on sale by 200,000 to 5.6m for the season – although this would still be 9pc higher than a year ago.

Jet2 added that holidaymakers are booking even closer to the departure date, with the trend becoming “more pronounced” since its last update in July.

This means it has “limited visibility” over demand, with the rest of its summer and much of its winter seat capacity “still to sell”.

It now expects profits for the year to March 31, 2026 to be towards the lower end of forecasts of £449m to £496m – compared to £446.5m a year ago.

Shares fell 12.5pc, or 202p, to 1411p while rivals Wizz Air and easyJet also slid 0.8pc and 4.2pc, respectively.

AJ Bell investment director Russ Mould said: “Millions prioritise experiences over material goods. Such a trend should be positive for airlines, yet countless individuals leave it to the last minute to book.”

Jet2 chief executive Steve Heapy said it was “operating in a difficult market” and added it had pushed through a “modest increase” in package holiday prices over the summer.

Package holiday passenger numbers rose 2pc in the five months to the end of August, in contrast to 8pc growth in the previous year.

Flight-only passengers rose 17pc.

The update marked a significant deterioration since July when Heapy said families were desperate to get away.

“I spend 50 weeks a year in this country and I want to escape it,” he remarked at the time.

“People want to get away from their day-to-day lives.”

Victoria Scholar, at Interactive Investor, said: “Shares hit a record high this year, but have been reversing. This shows airlines are generally not for the faint-hearted, with ferocious competition and economic pressures.

“Winter is generally more challenging and creates a significant degree of unpredictability. The group warned the cost-ofliving crisis could affect bookings.”