jet2 plane airplane jet2holidays
Jet2’s Gatwick debut is set to ignite fierce competition and holiday savings. (PHOTO: PEXELS)

Jet2's announcement that it will commence operations from London Gatwick in March 2026 has sent ripples through Britain's aviation sector. While the move signals an intensification of competition, it also presents a rare opportunity for informed holidaymakers to capitalise on a burgeoning price war.

The Leeds-based airline's aggressive expansion into Gatwick, a stronghold of easyJet and British Airways, creates a strategic window for savvy travellers to secure Mediterranean holidays at significantly reduced prices. But timing and tactical awareness will be key to maximising these benefits.

The Market-Entry Pricing Window

New entrants often follow a familiar pattern: prioritising market share over short-term profits, with fares staying below industry averages early on. Jet2's Gatwick expansion follows this strategy precisely.

The airline has stated that profitability at Gatwick isn't expected before 2029, signalling at least three years of intentionally low fares to attract customers from competitors. For travellers, this period offers a prime chance to book holidays cheaply without sacrificing quality—an advantage that will fade once Jet2 targets profitability.

The best booking window is between November 2025 and February 2026, when Jet2 is likely to launch promotional fares to boost early bookings and test the market. Booking summer or Easter 2026 holidays during this time could save £300 to £500 compared to prices six months later.

Exploiting the Three-Way Rivalry

Jet2's route network from Gatwick overlaps significantly with routes operated by easyJet and British Airways to popular sunshine destinations such as Mallorca, Alicante, Faro, and Rhodes. This overlap is strategic, designed to trigger price competition among the three airlines.

Economic principles suggest that when three carriers compete on similar routes, prices tend to decrease towards marginal costs. Neither airline can afford to cede market share, but excess capacity prevents premium pricing.

Smart travellers should focus on routes with multiple daily departures from all three carriers. These high-frequency corridors will experience the most intense price competition, especially during shoulder seasons when load factors and revenue margins are critical.

The Incumbent Response Strategy

EasyJet commands around 44% of Gatwick's departure seats, making the airport vital to its finances. British Airways, though smaller, earns significant revenue from premium fares, business travellers, and holidaymakers willing to pay for full-service options.

Both airlines face a tough choice: match Jet2's promotional fares and cut margins, or keep premium prices and risk losing volume. Early signs suggest they'll choose the former, sparking a price war that benefits cost-conscious travellers.

Savvy passengers should monitor all three carriers using fare comparison tools to spot which airline undercuts on specific routes and dates. During this phase, prioritising price over brand loyalty can lead to big savings.

Route Selection and Savings Potential

Not all Jet2 routes will yield the same discounts. The greatest value lies in high-frequency leisure routes where oversupply drives aggressive discounting. Mallorca, with multiple daily departures from all three airlines, is prime fare exploitation territory.

Routes to secondary destinations like Burgas or Paphos may offer smaller savings but provide access to underserved markets with limited competition.

Business travellers should consider city destinations such as Verona and Naples, where Jet2's service standards rival British Airways' at a fraction of the cost. The inclusion of 22kg checked baggage in the base fare also removes the hidden fees often associated with ultra-low-cost carriers.

Gatwick's Capacity Expansion and Market Impact

The UK government's approval of Gatwick's £2.2 billion northern runway will nearly double capacity, adding 110,000 flights annually. This expansion coincides with Jet2's Gatwick entry, creating an oversupply. Airlines will need to fill seats on new routes while defending existing market share, driving prices down.

Less slot scarcity may also attract more entrants beyond Jet2, increasing competition. Each new competitor will intensify price pressure, extending the opportunity for strategic travellers.

The Package Holiday Opportunity

Jet2holidays, the airline's tour operator arm and the UK's largest, offers another avenue for savings. It has significant buying power with hotels and ground services.

During Jet2's initial Gatwick entry, expect heavily discounted package deals to showcase its end-to-end services. Families comparing flight-only options to all-inclusive packages may find bundled holidays offer better value—especially for peak-season Mediterranean resorts.

Timing the Market Bottom

Smart travellers understand that airline pricing follows predictable cycles. Launch promotions in late 2025 will generate headlines and early bookings. After Easter 2026, airlines often introduce secondary discounts to maintain momentum during quieter travel periods.

The lowest prices are likely in October 2026, during Jet2's first autumn at Gatwick—when the airline needs to demonstrate year-round viability to investors and analysts.

A Limited-Time Arbitrage Window

Jet2's Gatwick ambitions offer a fleeting opportunity for strategic planners. Its focus on gaining market share over immediate profit means fares will normalize by 2029.

For informed holidaymakers, the next three years could see the biggest UK leisure travel discounts since budget carriers reshaped the market two decades ago. Careful monitoring of competitor prices and timing bookings could yield substantial savings on Mediterranean holidays.