# Travel firms and housebuilders lead profit warnings amid Iran war fallout

By Susannah Streeter — 2026-07-20

Susannah Streeter, chief investment strategist at Wealth Club, said: “Research just out from EY-Parthenon shows that profit alerts in the UK from travel and leisure firms have hit their highest level for nearly four years, amid the fallout from the Iran conflict.

“Once again, travel firms and housebuilders have sold off today as the escalation in the war looks set to dent their prospects.

“Airlines have flown lower in early trade, amid worries about bigger fuel bills and fresh disruption to key routes around the Middle East.

“Travellers have already shown more reluctance to book early, given the uncertainty surrounding the repercussions of the conflict on budgets and travel plans.

“Ryanair’s results show just how quickly nervousness surrounding the war has seeped into booking patterns and operational costs.

“Its profit has slumped by a third due to higher fuel costs and the reticence of passengers to book holidays as war rages in the Middle East and cost-of-living pressures mount across Europe.

“It’s a sign that consumers are once again tightening their belts and delaying discretionary spending, leaving airlines exposed not just to soaring jet fuel costs but also the prospect of softer demand.

“If the conflict drags on through the peak summer season, pressure on earnings across the travel sector looks set to intensify.

“Housebuilders are in the red, as investors brace for higher interest rates, with energy prices set to ramp up again. There had been hopes that the recent spike in energy prices would continue to be blunted.

“Wednesday’s CPI figures are expected to show inflation easing slightly from May’s 2.8 per cent annual rate.

“But any relief may prove short-lived given this escalation in the Middle East, which is likely to feed through into fuel, transport and business costs over the coming months.

“With the respite from higher inflation looking increasingly fleeting, interest rate expectations have shifted again, with at least two rate hikes now being priced in by financial markets.

“This will have yet another effect on affordability and is likely to keep more buyers on the sidelines.

“With housebuilders facing fewer reservations and the prospect of higher costs on construction sites, it’s not surprising shareholders have become increasingly uneasy.”

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