Jet2 is set to announce its full-year financial results on Wednesday, with shareholders keen to see whether the US-Iran peace agreement has boosted travel demand and stabilised jet fuel supplies as the summer peak approaches.
Profit Expectations and Summer Bookings
The airline and package holiday operator has guided shareholders to expect an operating profit of between £435 million and £440 million for the year ending March. In April, passenger bookings for the summer—both package holidays and flights—were ahead of the previous year, fueling optimism among investors for a strong season.
Jet2 noted that holidaymakers are increasingly booking closer to departure dates, suggesting that anxiety over the Middle East conflict has encouraged last-minute arrangements.
Impact of US-Iran Peace Deal
Analysts Russ Mould and Dan Coatsworth of AJ Bell said investors will be eager for an update on travel demand since US President Donald Trump announced a peace agreement with Iran last month. They stated: "Jet2's commentary on current trading will be much more important than its full-year numbers to March 31. Reports suggest holiday companies have enjoyed a strong bounce in trading since Donald Trump said a peace deal had been agreed with Iran."
The analysts added that oil prices have returned to pre-Iran war levels, and there are reports of a surge in bookings to Cyprus and Turkey—both destinations served by Jet2.
Jet Fuel Supply and Operations
The closure of the Strait of Hormuz during the Iran war had reduced global jet fuel supply, prompting some carriers to cut summer schedules. However, Jet2 reassured travellers in May that its flight schedule would run normally throughout the summer and committed to avoiding surcharges on existing bookings to offset increased costs.
Earlier this year, Jet2 launched its first flights from a new base at London Gatwick airport, which it expects to provide access to an additional 15 million potential customers.
