Jet2 is set to unveil its full-year financial results on Wednesday, following a turbulent period for the travel sector. The airline and package holiday giant informed investors it was anticipating an operating profit of between £435 million and £440 million for the year ending March. Passenger bookings for the summer were up in April compared with the same period last year, across both package holidays and flights, fuelling hopes of a bumper season ahead.
Peace Deal Impact on Travel Demand
AJ Bell analysts Russ Mould and Dan Coatsworth said shareholders will be keen to learn how travel demand has held up since US President Donald Trump announced he had struck a peace deal 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's Summer Schedule and New Base
Jet2 offers holidays to both destinations and throughout the Mediterranean. The effective closure of the Strait of Hormuz, which had severely restricted shipping since the outbreak of the Iran war, resulted in a drop in the global supply of jet fuel, prompting some airlines to scale back their summer travel schedules. However, Jet2 moved to reassure holidaymakers in May that its flight schedule would run as normal throughout the summer, and pledged not to impose surcharges on any pre-booked trips to offset the increased costs. In addition, the company launched its first flights from a brand new base at London Gatwick airport earlier this year, which it hopes will unlock bookings from an extra 15 million potential customers.
Last-Minute Booking Trends
Jet2 disclosed that holidaymakers were increasingly leaving it later to book their trips, suggesting that anxiety surrounding the Middle East conflict was pushing travellers towards last-minute decisions. The summer peak is around the corner, and the company's update on Wednesday will be closely watched for signs of sustained recovery in travel demand.
