Iran War Fears Impact Late Holiday Bookings According to Jet2

Jet2, the UK’s largest package holiday provider and the third-largest airline by passenger numbers, has reported that concerns over the ongoing conflict in the Middle East are causing holidaymakers to delay bookings until the last minute. The company stated that geopolitical uncertainty is limiting visibility for the peak summer season and beyond.

Despite these challenges, Jet2 noted a 6.2 per cent increase in summer passenger bookings compared to the previous year, driven by growth in both its airline and package holiday divisions. However, travel behaviour is shifting, as bookings are becoming increasingly closer to departure dates.

In light of rising fuel costs, Jet2 has taken proactive measures by hedging 87 per cent of its jet fuel for the summer. This decision is particularly significant given the sharp increase in jet fuel prices, which are influenced by volatility in oil markets, particularly following the effective closure of the Strait of Hormuz. This strategic approach allows Jet2 to mitigate some financial risks in a turbulent environment.

The International Energy Agency has raised alarms regarding potential jet fuel shortages in Europe as early as June. Jet2’s chief executive, Steve Heapy, indicated that the airline would continue monitoring the situation in the Middle East closely. Importantly, Jet2 has confirmed that it will not impose surcharges on customers who have already booked flights or holidays for the upcoming summer season.

As part of its financial outlook, Jet2 expects to report operating profits ranging from £435 million to £440 million for the 12 months ending in March 2026. This forecast aligns broadly with market expectations, albeit slightly below the previous year’s figures. Notably, these results will include £11 million in promotional start-up costs associated with the recent opening of its new base at Gatwick Airport, which is performing above expectations.

Jet2’s capacity for summer sales is projected at 19.9 million seats, reflecting a 7.7 per cent increase from the same period last year. As passenger volumes continue to face headwinds from geopolitical tensions, the outlook for the travel industry remains heavily influenced by international developments.