Brits booking holidays last minute over Iran war fears, says Jet2
Budget airline Jet2 said Brits are leaving holiday bookings until the very last minute as the Iran war threatens to wreak havoc on summer tourism plans.
The UK’s third-largest package holiday provider said on Wednesday: “Since commencement of the conflict in the Middle East, the booking profile has become increasingly close to departure.”
But the airline said it has eight per cent more seats on offer this summer than last year, with its on-sale capacity for the season standing at 19.9m this year.
Jet2 has sought to quash fears of a jet fuel shortage, despite warnings that airlines may only have weeks of fuel left, as the blockage to the Strait of Hormuz sends energy prices soaring.
The AIM-listed firm said 87 per cent of its required fuel for the summer is fixed-price, saying it has a “high degree of cost certainty”.
“We are also maintaining frequent dialogue with our fuel suppliers and airport partners on fuel supply,” the firm said.
The Middle East conflict is “limiting visibility for the peak summer season” but Jet2 is “fully committed to pricing that is attractive,” the company said.
Jet2 will not impose Iran war surcharge
The firm reported £2bn net cash and maintained its profit guidance of between £435m and £440m.
Last week, Jet2 ruled out following the owner of British Airways in adding a surcharge to its tickets to reflect the soaring jet fuel costs caused by the Iran war.
The holiday company removed the surcharge provision from its terms, though it had never previously applied the clause.
Steve Heapy, chief executive of the Leeds-based airline, said: “Holidaymakers should have every right to book their hard-earned break in the sun, without worrying about being hit with additional costs.”
The Jet2 boss said on Wednesday: “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.”
Airline soared on TikTok fame
The airline hailed its launch at Gatwick, where it said it is overperforming expectations with 400k summer passengers booked so far. Kicking off operations at the airport cost £11m, the firm said.
Before the Iran war grounded hopes of a flying year, Jet2 had seen a TikTok trend push it to record passenger numbers over the summer.
The firm said its tagline – “nothing beats a Jet2 holiday” – which was accompanied by Jess Glynne’s ‘Hold My Hand’, was viewed over 80bn times worldwide.
Jet2’s share price edged up 0.5 per cent on Wednesday to 1,075p, leaving the stock down 23 per cent in the year so far.