Jet2 has revealed that holidaymakers are increasingly leaving their bookings to the last minute, driven by concerns over the ongoing conflict in the Middle East and its impact on travel. The airline, which operates flights from Birmingham and other UK airports, noted that customers are making reservations closer to their departure dates than usual.
This shift in booking behavior comes amid continued geopolitical instability, which Jet2 says is “limiting visibility” for the peak summer travel season and beyond. To manage fuel cost risks, Jet2 has hedged 87% of its jet fuel requirements for the summer months of June through August. This move comes as the International Energy Agency warns of potential jet fuel shortages for European carriers starting in June.
Steve Heapy, Jet2’s Chief Executive, commented: “We continue to monitor the situation in the Middle East closely but remain focused on our medium-term goals. Jet2 is built on strong fundamentals, offering an attractive product and a brand known for VIP customer service.”
Industry experts echo these cautious sentiments. Garry White, Chief Investment Commentator at Charles Stanley, described the outlook as “cloudy,” citing fragile consumer confidence and persistent volatility in fuel prices linked to Middle East tensions. He also noted challenges including supply chain disruptions and inflationary pressures on labor and airport fees.
The wider travel sector reflects these uncertainties as well. On The Beach has suspended its annual guidance amid a “significant slowdown in demand” for popular destinations. Meanwhile, travel agent Loveholidays reportedly postponed its planned £1 billion flotation due to market turmoil caused by the ongoing conflict.
Despite the challenges, Jet2 remains optimistic, maintaining its annual profit expectations between £435 million and £440 million for the fiscal year ending 31 March. Furthermore, the airline reports that summer booked passenger numbers are currently 6.2% higher than last year. Growth has been seen in both package holidays and flight-only bookings, prompting Jet2 to increase the number of seats on sale for the summer by 7.7%, bringing the total to 19.9 million seats.