Jet2 has released an update revealing a surge in demand following US-Iran peace talks, with summer bookings up 7% year-on-year. The airline and package holiday provider posted a pre-tax profit of £551 million for the year ending March, down 7% from £593 million the previous year.
Record Passenger Numbers and Capacity
Jet2 announced record annual passenger figures of 20.8 million, a 5% rise from the previous year. The average proportion of seats filled on flights for the four months to the end of July is 1.2 percentage points higher year-on-year. The company said its performance at Gatwick Airport, where it began flights and holidays in March, is ahead of initial expectations, with further expansion planned for summer 2027.
Impact of Geopolitical Stability
US President Donald Trump announced a peace deal with Iran last month, though it has been called into question following overnight strikes. Publishing its full-year financial results, Jet2 said: "Reduced geopolitical uncertainty has led to strong booking momentum in recent weeks." Chief executive Steve Heapy said demand has risen across all destinations, with the biggest recoveries in percentage terms in areas hardest hit by the conflict, including Turkey, Cyprus, some eastern Greek islands, Bulgaria, and parts of north Africa.
"I think confidence has improved," Heapy said. "People perhaps don't like to commit to travelling when there is a conflict, even though from one of our Turkish resorts to Tehran it was 2,000 kilometres, that's like from Edinburgh to the Canary Islands, that's a hell of a long way. But people don't like to commit, particularly perhaps families with younger children. But we are seeing a bounce-back across all our destinations, and I think people are now realising 'I feel a little more confident, we're going to go on holiday and get away'. We speak to our customers a lot and try and understand their booking intentions. A massive amount of people still want to go away."
Investor and Analyst Reactions
Julie Palmer, partner at consultancy firm Begbies Traynor, said: "Investors will be pleased to see strong profitability has been delivered alongside evidence of investment." She added: "Jet2 will be hoping a peace deal holds and stabilises the market as it eyes further growth. Signs that this is bringing back confidence in spending for holidaymakers during the crucial summer season will be welcomed by the operator too, and it will be hoping it can continue to tempt customers into spending on holidays."
