Jet2 records £400m boost as Middle East conflict drives jet fuel prices higher
Jet2 has reported it defied the travel chaos caused by the Middle East conflict to record a £388m balance sheet boost from surging jet fuel prices, as the Iran war drove up the market cost of fuel
Jet2 has reported it defied the travel chaos caused by the Middle East conflict to record a £388m balance sheet boost from surging jet fuel prices, as the Iran war drove up the market cost of fuelCoreena FordChronicle and Journal business writerandFelix Armstrong www. cityam. com15:49, 08 Jul 2026A Jet2 plane taking off from Liverpool John Lennon Airport(Image: Peter Byrne/PA Wire)Jet2 recorded a £400m windfall from the surge in jet fuel prices, which had sparked widespread concern that summer holidays could be scrapped and airlines might collapse. The package holiday operator revealed that it weathered the travel disruption brought about by the Middle East conflict, instead reaping a £388m balance sheet boost from soaring jet fuel prices. Having already secured low fuel prices with its suppliers, the rising market cost of fuel meant the value of Jet2's fuel contracts rocketed during the conflict. The AIM-listed company stated that an additional £388m in income was "primarily due to favourable fair value movements in jet fuel derivatives at the balance sheet date as market pricing increased following the escalation of conflict in the Middle East". Earlier this year, the UK had been warned that it is the "most exposed" to a jet fuel crisis, prompting ministers to act swiftly to safeguard airlines' access to fuel and suspend airport capacity restrictions, as reported byCity AM. In its annual accounts published on Wednesday, Jet2 sought to push back against the pessimism that has hung over travel firms, stating that recent "reduced geopolitical uncertainty" has driven "strong booking momentum" in recent weeks. The firm's share price surged by nine per cent to 1,486p at Wednesday's market open, leaving the stock up five per cent for the year to date. 'Don't treat airline industry as cash cow' Jet2 chief executive Steve Heapy cautionedAndy Burnhamagainst treating the aviation sector as a "cash cow" following the disclosure of £50m in additional tax burdens. Addressing shareholders on Wednesday morning, he urged future Prime Ministers that raising taxes on airlines "increases the price of flying" for Brits, as Burnham appears poised to enter Downing Street later this month. Heapy said: "Don't treat the aviation or holiday industry as a cash cow, because taxes increase the price of flying. "I would caution against continuing the policy of taxing the industry. Last year, as you've seen from the results, we absorbed 50 million pounds of additional regulatory costs that were imposed on us. I think you know enough is enough. "The company announced a new £250m share buyback programme, stating it reflects its "strong liquidity, confidence in the medium-term outlook and disciplined approach to capital allocation". However, Jet2 acknowledged that travel uncertainty stemming from the Iran conflict is prompting holidaymakers to make more last-minute bookings than is typical. The airline attributed a 67 per cent drop in its cash inflow to £77m in the year ending March to "customers delaying their holiday bookings following the start of the conflict". Jet2 recorded a four per cent rise in revenue over the period to £7. 5bn, though pre-tax profit fell by seven per cent to £551m, largely due to reduced returns on its cash deposits. The holiday provider boosted its seat capacity by eight per cent to 24 million in the year to March, carrying 20. 8 million passengers — five per cent more than the prior year. Jet2 expands 'beyond Northern roots'. In March, the company launched a six-aircraft operation at Gatwick, describing it as a "pivotal movement in our growth journey as we continue to advance beyond our established Northern roots". Jet2 now operates within a 90-minute drive of more than 90 per cent of the UK's population, the firm confirmed. Richard Hunter, head of markets at Interactive Investor, said that Jet2 has proved "it is no minnow. It is the third largest airline in the UK behindBritish AirwaysandeasyJet, ahead of TUI andVirgin Atlantic. "The company's £6. 2bn market capitalisation makes it the second-largest business on the AIM market, and Hunter noted it would "comfortably" qualify for the upper end of the FTSE 250 were it to make the switch. Heapy said: "We took more customers on holiday than ever before, delivered record revenue and achieved a resilient operating profit performance even after absorbing Gatwick start-up investment and wider industry cost pressures. "Article continues belowFounded in 2003 and headquartered at Leeds Bradford Airport, Jet2 offers a choice of more than 5,500 hotels and 3,750 villas across 80 destinations and operates X planes.