Published: March 12, 2026 at 9:16 am
Online travel agent On The Beach has suspended its annual profit forecast after reporting a ‘significant slowdown in demand’ because of the Middle East conflict.
Although the Manchester-headquartered company has ‘limited exposure’ to destinations in the Middle East, they’ve suffered a significant drop in demand for holidays to Turkey, Greece, Cyprus and Egypt in particular.
On The Beach say the ongoing uncertainty will impact their profitability forcing them to suspend its annual profit forecast.
The company’s share price dropped by 10 per cent in early morning trading on the back of the news.
In a statement to the London Stock Exchange this morning ahead of its annual general meeting a spokesman said: “The timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown. Both will impact group profitability and as a result the group is temporarily suspending its guidance of £39m to £43m Adj. PBT for the full year.
“Despite the volatile environment, the company continues to trade profitably and generate cash because of its asset light model with significantly lower fixed costs, commitments and exposure to increases in variable costs versus the asset heavy tour operators.
“The board remains confident in the delivery of the group’s medium-term ambition of £2.5bn TTV, £100m EBITDA, £85m PBT and 38.7p EPS.”
The timing of the Middle East conflict comes after On The Beach enjoyed a record 2025, with bookings up 10 per cent and bookings from repeat customers up 19 per cent