Profit warnings issued in 2022 by travel companies 'already double 2021’s total'

In total, 22 profit warnings were issued by FTSE travel and leisure companies in the first three-quarters of 2022 compared to nine in the same period of 2021 and 11 in the whole of 2021.

The sector issued nine warnings in Q3 2022 alone, the highest quarterly total since Q2 2020, with rising costs featuring in six of the sector’s warnings.

Across all FTSE sectors, 86 profit warnings were issued between July and September 2022, compared to 51 in the same period of 2021, an increase of 69% and a 34% increase from Q2 2022 when 64 warnings were issued.

Consumer-facing companies issued 44 warnings in total – the highest quarterly total since the start of the pandemic. 

Meg Wilson, turnaround and restructuring partner at EY-Parthenon, said: "The travel and leisure sector had been the beneficiary of pent-up consumer spending post-pandemic.

"However, the disruption at UK airports over the summer dampened the recovery for many travel operators, while rising costs, pressure on disposable incomes and falling consumer confidence look set to intensify the sector’s challenges as it approaches a vital sales period."