Jet2 Summer Bookings Rise as Middle East Tensions Shift

British travel firm Jet2 reported a 7.1% increase in summer holiday bookings compared to last year, attributing the rebound to a heatwave across Europe and a temporary reduction in geopolitical uncertainty in the Middle East. Shares in the company rose 16% following the update, although the firm saw a 7% drop in pre-tax profit to £551 million for the year ending March 31. Jet2 achieved record annual passenger numbers of 20.8 million, with strong performance noted at its new London Gatwick base.

Chief Executive Steve Heapy stated that demand strengthened most in regions near the conflict zone, specifically Turkey, Cyprus, Bulgaria, North Africa, and the eastern Greek islands. He noted that consumers had previously delayed purchases due to the conflict, but confidence has since improved across all destinations.

This recovery faces immediate risks as U.S. President Donald Trump declared a June interim peace accord and ceasefire with Iran was "over" upon arriving at a Nato summit in Ankara. The announcement followed overnight strikes and caused oil prices to rise more than 6%. Separately, the travel industry faces operational challenges as the European Union rejected requests from airlines and airports to suspend a new biometric border check system involving fingerprinting and facial recognition, which has led to significant delays at major European airports.