Susannah Streeter, chief investment strategist at Wealth Club, said: “The war in the Middle East has already severely disrupted travel plans around the world, with Heathrow airport reporting its passenger numbers fell by 5.3 per cent in April compared to last year.
“The global hub suffered from flight cancellations and re-routing but also travellers have become more nervous about booking big trips away.
“The airport is counting on this being a short-term disruption, but with jet fuel issues becoming a headache for countries around the world, it could turn into a medium-term problem, especially if more holidaymakers delay booking trips.
“However, there is clearly an underlying desire to travel, with April still the busiest month this year, despite the disruption.
“Given recent globe-trotting trends, a rebound in bookings is expected but it will depend on when a longer-term resolution can be achieved, and crucially how long it could take to reopen the Strait of Hormuz.
“Friday’s interim statement from British Airways owner IAG illustrated that the urge to travel was super-strong in the first quarter of the year with a surge in passenger numbers.
“Shares have lifted again today, in the hope that the Iran war fallout will be more temporary.”
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