UK travel company Jet2 has warned that uncertainty over the Iran war was limiting its outlook for seat occupancy in the peak summer travel season, after bookings slowed from levels seen in February.
The company said summer bookings were up 7.7% from a year earlier. That is lower than the 8% growth in bookings it reported in February.
The aviation and leisure travel sector has come under pressure due to the conflict in the Middle East, with the Strait of Hormuz blockade causing jet fuel shortages and customer cancellations rising amid uncertainty.
Jet2, the UK's third-largest airline, said customers are booking vacations closer to departure since the start of the conflict.
"At present, Q1 (April, May, June) combined average load factor is in line with the prior year, with the current geopolitical uncertainty limiting visibility for the peak summer season and beyond," the company said in a statement.
It noted that 87% of its summer jet fuel requirements were hedged amid the jet fuel crisis and said it expects annual operating profit in line with market expectations for the year ended March 31, 2026.
JPMorgan analyst Harry Gowers notes that Jet2's pricing could be weaker than prior trends this summer, as the company said it remains committed to "attractive pricing" to appeal to customers.
Shares of the holiday package provider fell as much as 8.41% to 980 pence, before recovering to rise 0.5%.
