Shareholders in one of Britain’s largest package holiday operators will be eager to learn whether US-Iran peace negotiations have boosted travel demand and stabilised jet fuel supplies as the summer booking season gets under way. Jet2 is set to reveal its full-year financial results on Wednesday following a turbulent period for the travel sector.
The airline and package holiday operator informed shareholders that it anticipated reporting an operating profit of between £435 million and £440 million for the year ending March. Passenger bookings for the summer were ahead of the previous year in April, across both package holidays and flights, fuelling optimism amongst investors of a buoyant season to come.
Jet2 disclosed that holidaymakers were increasingly leaving their bookings until closer to the departure date, suggesting that anxiety surrounding the Middle East conflict was encouraging travellers to opt for last-minute arrangements.
Russ Mould and Dan Coatsworth, analysts at AJ Bell, noted that investors will be keen to receive an update on how travel demand has held up since US President Donald Trump announced he had struck a peace agreement with Iran last month.
“Jet2’s commentary on current trading will be much more important than its full-year numbers to March 31,” they said. “Reports suggest holiday companies have enjoyed a strong bounce in trading since Donald Trump said a peace deal had been agreed with Iran.
“We’ve already seen oil prices return to pre-Iran war levels and there are reports from various holiday companies of a surge in bookings to Cyprus and Turkey.”
Jet2 offers holidays to both locations and throughout the Mediterranean. The effective closure of the Strait of Hormuz, which severely restricted shipping since the Iran war began, resulted in a reduction in the worldwide supply of jet fuel, prompting some carriers to trim their summer travel programmes.
However, Jet2 sought to reassure travellers in May that its flight schedule would run as normal throughout the summer and committed to avoiding surcharges on any existing bookings to offset the increased costs.
Meanwhile, the operator launched its inaugural flights from a new base at London Gatwick airport earlier this year, which it anticipates will provide access to an additional 15 million prospective customers.