Iran conflict brings new levels of uncertainty for travel industry, says Spain's airport operator

MADRID - The conflict in Iran and the possibility of a jet fuel crisis are causing unprecedented levels of uncertainty for the travel industry ahead of the summer holiday season, Spanish airport operator Aena AENA.MC said on Wednesday.

Aena is waiting for greater visibility before providing an update on the current passenger traffic forecast of 1.3% growth for this year, CFO Ignacio Castejon said during a call with analysts.

"We are seeing news about flights being cancelled or airlines confirming flight tickets going up ... We are seeing many trends. It is too early to put a number on it given the uncertainty, which in my opinion is at the highest levels that I have seen in my career," he said.

Spain's tourism industry has continued to benefit from strong demand as holidaymakers avoid the Middle East, prompting airlines operating in Spain to add capacity for the summer season, although the tourism industry has flagged potential risks from a fuel supply crunch, which could curtail travel.

Several European airlines have warned about the impact of high jet fuel prices while the Strait of Hormuz, through which 20% of the world's oil is transported, remains closed.

Castejon said that supplies of jet fuel and kerosene had been secured for the coming weeks. "Of course, everything is going to depend on the length of the war," he said.

Aena, which operates all of Spain’s airports as well as some in Latin America and Britain, said earlier on Wednesday its first-quarter net profit rose 9.3% from a year ago as passenger traffic to and from Spain increased 3.2% in the first quarter.

The company said it booked a net profit of 329.4 million euros ($385.37 million), beating analysts' average forecast of 325 million euros compiled by LSEG.

Aena's shares fell 3.9% after it posted a first-quarter EBITDA of 661 million euros ($773.57 million), 3.1% below a company-provided consensus.

Revenue grew 11.6% to 1.47 billion euros in the first quarter, slightly above the analysts' estimates of 1.42 billion euros, but expenses grew 14.7%, partly due to higher staff costs.

($1 = 0.8548 euros)

-Corina Pons, editing by Andrei Khalip and Charlie Devereux/Reuters