Jet2, one of the UK's largest package holiday firms, will release its full-year financial results on Wednesday, with investors keen to see if the US-Iran peace deal has boosted travel demand and stabilised jet fuel supplies as summer bookings begin.
Financial Expectations and Booking Trends
The airline and package holiday provider has forecast an operating profit between £435 million and £440 million for the year ending March. April saw a year-on-year increase in passenger bookings for both package holidays and flights, raising investor optimism for a strong summer season. However, Jet2 noted that holidaymakers are increasingly booking closer to departure dates, suggesting lingering nervousness over Middle East conflicts.
Impact of US-Iran Peace Deal
Russ Mould and Dan Coatsworth, analysts at AJ Bell, emphasised that current trading updates will be more critical than past full-year numbers. They pointed to reports of a strong bounce in trading since US President Donald Trump announced a peace deal with Iran last month. "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," they said. Jet2 offers holidays to both destinations and across the Mediterranean.
Jet Fuel and Operational Stability
The effective closure of the Strait of Hormuz during the Iran war had constrained shipping and reduced global jet fuel supply, prompting some airlines to cut summer schedules. However, Jet2 reassured customers in May that its flying schedule would operate normally over summer and pledged not to introduce surcharges on booked trips to cover higher costs.
Expansion at Gatwick
Earlier this year, Jet2 launched its first flights from a new base at London Gatwick airport, aiming to attract an additional 15 million potential customers.
