BUSINESS NEWS


Jet2 predicts dip in operating profit for year to March


Jet2 reported its operating profit for the 12 months to March would be slightly down on last year at £435 million to £440 million in a trading update last week, compared with £446.5 million in 2025. The company gave no


assessment of the cost impact of the war in the Middle East, but said bookings had “become increasingly close to departure” since the crisis began. However, it reported “positive


growth” in both package and flight-only sales, with summer capacity up 7.7% on last year at


Jet2’s summer capacity is 7.7% up on 2025


Air France-KLM slashes operating losses to €27m for first quarter


19.9 million seats and bookings up by 6.2%, while noting “the current geopolitical uncertainty” was “limiting visibility for the peak summer season”. The carrier reported being


hedged on the price of 87% of its fuel for the summer and said: “We’re maintaining frequent dialogue with our fuel suppliers and airport partners on fuel supply.”


Air France-KLM reported a substantial improvement in operating losses for the three months to March despite “geopolitical turmoil and operational disruptions”, with an operating loss of €27 million compared with a €328 million loss the previous year. That produced a net loss of


€252 million. However, the group noted the “fuel price increase since the start of the Middle East conflict is not visible [in the first-quarter results] due to a delay in pricing” and warned its fuel bill for the three


months to June would be $1.1 billion higher than previously forecast and $2.4 billion higher for the year. Chief executive Ben


Smith (pictured) said: “Fuel price increases are expected to weigh on the coming quarters.” He added the group acted “swiftly” to reallocate capacity to Asia and


east Africa when transit via the Gulf was closed and “to mitigate the fuel price impact by including a higher carrier surcharge per ticket”. Smith also reported reduced


capacity growth for the year of 2%-4%, down from 3%-5%.


Booking counts cost of conflict 6


Ian Taylor


Booking Holdings estimated the war on Iran reduced its bookings and revenue growth by six percentage points in March and warned of a significantly greater impact in the three months to June. The company, which owns


Booking.com, Priceline in the US and Agoda in Asia, reported a 6% rise in room nights year on year in the three months to March and a 15% rise in gross bookings, with net profit surging to $1.18 billion despite the war – up from $333 million a year ago. It forecast 4%-6% growth in


bookings in the quarter to June despite assuming impacts from the crisis in the Middle East continue “through [to] the end of June”, hitting demand “across Middle Eastern inbound, outbound and intra-region routes” and disrupting “major transit corridors”. Booking’s full-year forecast


travelweekly.co.uk


Estimated percentage point hit to growth due to war on Iran


assumes “a recovery in the second half of the year”. Chief executive Glenn Fogel


acknowledged: “A sustained disruption could introduce broader inflationary pressures, including fluctuations in jet fuel prices [and] airline capacity reductions, as well as weigh on traveller sentiment.” But he argued: “Since these


extended impacts are harder to estimate, we’ve not included them in our guidance assumptions.” He insisted: “Periods of uncertainty


are not new to our industry. This will end. We don’t know when, but it will. Travel will normalise.”


Chief financial officer Ewout


Steenbergen reported “elevated cancellations and a moderation in new bookings in March”, saying “about half the impact” of the six- point reduction in room nights came from reduced bookings “and half from increased cancellations”. However, he said: “We expect the


associated impact on revenue from the conflict will not be fully realised until future quarters.” Steenbergen told analysts: “Given


the uncertain macro backdrop, we’ve begun strictly managing discretionary spend and recalibrating business-as-usual hiring.” He said: “Our assumption is


that the impacts from the conflict continue for four months [to the end of June] and this is followed by a recovery.”


• Royal Caribbean Cruises gave a similarly upbeat forecast as it


reported better-than-expected


Glenn Fogel


results for the three months to March while noting: “Bookings moderated in March and early April for Mediterranean and west coast of Mexico itineraries.” It said these markets “have now


recovered” but fuel costs for the year would be about $1.3 billion higher than previously forecast. The group reported capacity up


8% year on year and a 12% increase in guests in the quarter, producing $900 million in net profit.


7 MAY 2026 47


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