Jet2 is set to unveil its full-year financial results on Wednesday, with investors closely watching for updates on summer booking trends following the recent US-Iran peace deal. The airline and package holiday provider expects to report an operating profit of between £435 million and £440 million for the year ending March 31.
Summer Bookings Show Positive Trends
Passenger bookings for summer were up in April compared to the previous year, for both package holidays and flights, raising hopes of a strong season ahead. However, Jet2 noted that holidaymakers are increasingly booking closer to departure dates, reflecting nervousness about the Middle East conflict.
Impact of US-Iran Peace Deal
Russ Mould and Dan Coatsworth, analysts at AJ Bell, said: "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." They added that oil prices have returned to pre-Iran war levels, and there are reports of a surge in bookings to Cyprus and Turkey.
The effective closure of the Strait of Hormuz during the Iran war reduced global jet fuel supply, leading some airlines to cut summer schedules. But Jet2 reassured customers in May that its flying schedule would operate normally and pledged not to introduce surcharges on booked trips to cover higher costs.
Expansion at London Gatwick
Jet2 launched its first flights from a new base at London Gatwick airport earlier this year, aiming to open up bookings to an additional 15 million potential customers. The expansion is expected to support future growth as demand for travel recovers.
