Jet 2 says holidaymakers are leaving bookings until the last minute amid fears over Iran
Holidaymakers are increasingly leaving bookings until the last minute amid fears over the Iran war, according to Jet2.
The airline operator said customers have been making bookings ‘increasingly close to departure’ since the conflict broke out at the end of February.
Echoing other travel giants, Jet2 warned that the uncertainty of the situation was ‘limiting visibility for the peak summer season and beyond.’
It comes as others across the industry have said worries about jet fuel supply and the war’s impact on the wider economy have deterred holidaymakers.
But Jet2 said its booked passenger numbers for this summer were currently 6.2 per cent higher than last summer. Both its package holidays and flight-only deals have seen positive growth.
It has increased the number of seats on sale for this summer by 7.7 per cent to 19.9million.
Jet2 has given the latest insight into how the war in the Middle East is impacting the travel sector
And the company did its best to play down fears over jet fuel prices, which have soared since imports have been unable to travel through the Strait of Hormuz due to the conflict.
Jet2 said it has already agreed – known as hedging – 87 per cent of its jet fuel over the summer and is in ‘frequent dialogue’ with its fuel suppliers over supply.
It comes as the International Energy Agency has suggested that European airlines may start to see jet fuel shortages from June.
Steve Heapy, chief executive, added: ‘Clearly, we continue to monitor the situation in the Middle East but remain focused on our medium-term goals. Jet2 is a business with strong fundamentals, an attractive product offer, and a brand synonymous with VIP customer service.’
Even before the war, there has been a shift of holidaymakers booking closer to their getaways. Heapy identified this as a growing trend at an update in November last year.
Jet2 retained its annual profits expectations for between £435million and £440million for the 12 months to the 31 March. Its shares have fallen by around 13 per cent since the outbreak of war on 28 February.
Garry White, chief investment commentator at investment management firm Charles Stanley said that the outlook for the year ahead ‘remains cloudy’ as ‘fragile’ consumer confidence weighs.
White added: ‘Volatile fuel prices, driven by the crisis in the Middle East, continue to pose a risk, while wider geopolitical tensions are disrupting supply chains and inflationary pressures persist in labour and airport charges.’
The update followed a bleak profit warning from Tui, Europe’s biggest tour operator, which also said holidaymakers were showing ‘increased caution’ and booking flights and hotels closer to their departure dates.
Demand has also shifted away from Eastern Mediterranean destinations, including Turkey, Cyprus and Egypt, towards the Western Mediterranean, such as Spain and Malta.
Last month, online travel firm On The Beach suspended its annual guidance, citing a ‘significant slowdown in demand’ for popular destinations, including Turkey, Greece, Cyprus and Egypt.
And online travel agent Loveholidays reportedly delayed its £1billion flotation amid the market turmoil and disruption to travel caused by the conflict.
The profit warnings come as British holiday operators have reported higher Easter and summer bookings this year as the war persuades Britons to opt for staycations rather than overseas trips.
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