Jet2, one of the UK's largest package holiday firms, is set to announce its full-year financial results on Wednesday, with investors keen to see if the US-Iran peace deal has spurred summer travel demand and stabilised jet fuel supplies.
Profit Expectations and Summer Bookings
The airline and package holiday provider has guided investors to expect an operating profit between £435 million and £440 million for the year ending March. April saw a year-on-year increase in passenger bookings for both package holidays and flights, raising hopes for a robust summer season.
Jet2 noted that holidaymakers are increasingly booking closer to departure dates, indicating lingering nervousness about Middle East conflict prompting last-minute travel decisions.
Impact of US-Iran Peace Deal
Russ Mould and Dan Coatsworth, analysts at AJ Bell, emphasised that current trading commentary will outweigh the full-year numbers. They stated: "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 sells holidays to both Cyprus and Turkey, as well as other Mediterranean destinations.
Jet Fuel Supply and Operations
The effective closure of the Strait of Hormuz during the Iran war constrained shipping, reducing global jet fuel supply and prompting some airlines to cut summer schedules. However, Jet2 reassured customers in May that its flying schedule would operate normally over summer and pledged no surcharges on booked trips to cover higher costs.
Expansion at London Gatwick
Earlier this year, Jet2 launched flights from a new base at London Gatwick airport, aiming to tap into an additional 15 million potential customers.
