Jet2 confirms late booking trend since outbreak of Iran war

Jet2 bookings have become “increasingly close to departure” since the start of the conflict in the Middle East at the end of February.

 

The admission came in a trading update today (Wednesday) as the parent of Jet2.com and Jet2holidays continues to monitor the situation surrounding the war in Iran.

 

The company’s annual profits are set to miss the previous year’s total due to £11 million in start-up costs for entry into Gatwick for this summer.

 

Jet2 expects to report an operating profit of between £435 million and £440 million for the 12 months to March 31 against £446.5 million in 2024-25, a figure described as being in line with current market expectations.

 

Capacity for this summer is 7.7% higher than last year at 19.9 million seats with bookings to date up by 6.2% with both package holidays and flight-only showing “positive growth”.

 

Jet2 said: “Since commencement of the conflict in the Middle East, the booking profile has become increasingly close to departure.”

 

The combined average load factor for the April to June quarter is in line with the prior year, “with the current geopolitical uncertainty limiting visibility for the peak summer season and beyond”.

 

The UK’s largest package holiday provider added: “As previously stated, we continue to invest in load factor and remain fully committed to pricing that is attractive and represents real value to our customers.”

 

The group, which ruled out surcharges on booked holidays last Friday, has a “strong hedged position” with 87% of its summer requirement hedged and jet fuel swaps at an average price of $707 per metric tonne “giving a high degree of cost certainty”.

 

The company added: “We are also maintaining frequent dialogue with our fuel suppliers and airport partners on fuel supply.”

 

Today’s profit projection in a trading update includes £11 million of promotional and resourcing start-up costs associated with the introduction of the base at Gatwick, which started operations on March 26.

 

Jet2 pointed to a strong balance sheet, with total cash at March 31 of £3.3 billion, net cash of £2 billion and access to an undrawn £500 million revolving credit facility.

 

“This sensible and disciplined approach to balance sheet management enables us to navigate short-term volatility effectively, continue to invest in future growth opportunities, and has allowed us to return £363 million of capital to shareholders during the year,” the company noted.

 

“Looking ahead we believe the strength of Jet2’s end-to-end business model continues to differentiate the group within a competitive market.

 

“In addition, the successful operational launch at London Gatwick takes Jet2 to the UK’s biggest holiday airport for the first time, with over 90% of the British public now within a 90-minute drive of one of Jet2’s 14 UK bases."

 

Chief executive Steve Heapy said: "FY26 was another strong year for Jet2, topped off by the successful launch of operations at London Gatwick which is performing ahead of our initial expectations with over 0.4m passengers booked for the summer season.

 

“As ever, our focus on providing the very best customer first service underpinned our performance in the year, and with that, I would like to thank every one of our colleagues for their unwavering hard work and support.

 

“Our fully integrated, customer-focused and service-led business model enables growth and resilience, setting the business apart when it comes to earning customer loyalty and repeat bookings. This is supported by our growing fleet of more fuel efficient and quieter A321neo aircraft, with 31 in operation this summer.

 

“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.

 

“These are the attributes that sit at the heart of our people, service profits philosophy and give me confidence for long-term profitable growth as more and more customers rely on Jet2 for their hard-earned holidays."

 

Full results for the year to March 31 are due to be issued on July 8.