On The Beach Suspends Profit Forecast Over Middle East Conflict

On The Beach, a major UK-based online package holiday provider, suspended its annual profit forecast on Thursday amid a sharp decline in bookings to popular Mediterranean destinations, triggered by escalating conflict in the Middle East.

The company, which offers holidays to resorts in Turkey, Greece, Cyprus, and Egypt, reported a significant slowdown in demand since the onset of hostilities involving the United States, Israel, and Iran in late February. In a statement to investors, On The Beach noted its limited direct exposure to Middle Eastern countries but highlighted the broader reluctance among travelers to fly amid regional instability. Destinations such as Antalya and Marmaris in Turkey, Crete and Corfu in Greece, and Hurghada and Sharm el-Sheikh in Egypt have seen the most pronounced drops. The firm had previously guided for adjusted pretax profits of 39 million to 43 million pounds for the full financial year but withdrew that projection due to uncertainty over the conflict's duration and the pace of any recovery in travel demand.

Shares in On The Beach fell sharply in response, dropping 14 percent to 166 pence by midday trading, reducing the company's market value to...