Jet2 has issued a new update regarding jet fuel for holiday bookings in June, July, and August, as the airline operator reports that customers are making bookings increasingly close to departure amid fears over the Middle East and the Iran war.
Booking Trends and Fuel Hedging
The airline, which operates from Birmingham, warned that the uncertainty of the situation is limiting visibility for the peak summer season and beyond. Jet2 has already hedged 87% of its jet fuel for the summer period spanning June to August. This comes as the International Energy Agency suggests that European airlines may start to see jet fuel shortages from June.
CEO and Analyst Comments
Steve Heapy, chief executive of Jet2, stated: "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."
Garry White, chief investment commentator at Charles Stanley, noted that the outlook for the year ahead remains cloudy due to fragile consumer confidence. He added: "Volatile fuel prices, driven by the crisis in the Middle East, continue to pose a risk, while wider geopolitical tensions are disrupting supply chains and inflationary pressures persist in labour and airport charges."
Industry Impact
On The Beach has suspended its annual guidance, citing a significant slowdown in demand for popular destinations. Loveholidays reportedly delayed its £1 billion flotation amid market turmoil and disruption caused by the conflict.
Jet2's Financial Outlook
Despite these challenges, Jet2 retained its annual profit expectations between £435 million and £440 million for the 12 months to 31 March. The carrier reported that booked passenger numbers for this summer are currently 6.2% higher than last summer, with both package holidays and flight-only deals showing positive growth. Jet2 has also increased the number of seats on sale for this summer by 7.7% to 19.9 million.
