On The Beach shares plunge after Middle East battle hits vacation bookings

Shares in On The Beach have plunged after it suspended its annual guidance as war in the Middle East hits travel bookings.

The online travel company said there had been a ‘significant slowdown in demand’ for popular destinations, including Turkey, Greece, Cyprus and Egypt.

Shares fell as much as 13 per cent on Thursday morning after the group said it was temporarily suspending its guidance of between £39million to £43million in annual adjusted profit before tax.

It added that ‘the timing of when the conflict will end and the shape of recovery in demand to these destinations are unknown,’ and both these factors would impact profits.

The travel industry has been thrown into uncertainty after US-Israeli strikes on Iran began at the end of February.

Bookings to Greece (pictured) have been impacted by the outbreak of conflict in the Middle East

More than 23,000 flights have been cancelled since, with key airports in Dubai and Doha shut or operating with restricted routes.

Shaun Morton, chief executive of On the Beach, said: ‘Following the onset of the conflict in the Middle East, our operational teams have been working round the clock to support directly impacted customers in resort and to enable a return home as soon as possible.

‘I am confident that On the Beach’s enhanced strategy to scale into new markets, underpinned by its asset light operating model with no committed inventory to fill, remains a key competitive advantage.’

The firm offers bookings to resorts including Hurghada and Sharm El Sheikh on Egypt’s Red Sea coast, Antalya and Marmaris in Turkey and Abu Dhabi and Dubai in the United Arab Emirates.

The tourism industry is losing just under £450m per day in lost spending due to the conflict, according to estimates from the World Travel & Tourism Council.