Jet2 has reported that British holidaymakers are delaying their bookings until the last minute due to concerns over the Iran war, which threatens to disrupt summer tourism plans. The UK's third-largest package holiday provider stated on Wednesday that "since commencement of the conflict in the Middle East, the booking profile has become increasingly close to departure."
Capacity and Fuel Security
Despite the uncertainty, Jet2 confirmed it has eight percent more seats available this summer compared to last year, with on-sale capacity reaching 19.9 million. The airline also sought to alleviate fears of a jet fuel shortage, noting that 87 percent of its required fuel for the summer is fixed-price, ensuring a "high degree of cost certainty." The firm emphasized ongoing dialogue with fuel suppliers and airport partners to secure supply.
No War Surcharge
Jet2 has ruled out imposing a surcharge on tickets to offset rising jet fuel costs caused by the Iran war, unlike the owner of British Airways. The company removed the surcharge provision from its terms, though it had never previously applied the clause. CEO Steve Heapy stated, "Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs."
Financial Performance
The AIM-listed firm reported £2 billion in net cash and maintained its profit guidance between £435 million and £440 million. While the Middle East conflict is "limiting visibility for the peak summer season," Jet2 remains committed to attractive pricing. Heapy added, "We continue to monitor the situation in the Middle East but remain focused on our medium-term goals."
Gatwick Launch and TikTok Fame
Jet2 highlighted its successful launch at Gatwick, where it has overperformed expectations with 400,000 summer passengers booked so far, despite an £11 million cost to initiate operations. Prior to the Iran war, the airline experienced a TikTok trend that drove record passenger numbers. The tagline "nothing beats a Jet2 holiday," accompanied by Jess Glynne's 'Hold My Hand', garnered over 80 billion views worldwide. Jet2's share price edged up 0.5 percent on Wednesday to 1,075p, though it remains down 23 percent year-to-date.
