UK Firms Issued 59 Profit Warnings in Second Quarter, Highest Geopolitical Share in 25 Years

Listed travel and leisure companies on London’s FTSE issued seven profit warnings between April and June 2026, the highest quarterly total for the sector since the third quarter of 2022. The Iran war began on February 28, 2026, and The Independent reported that 80 UK profit warnings have been issued since the end of February, with 40 percent of those flagging the impact of the conflict.

Travel firms and airlines felt early effects, with easyJet issuing a profit warning that cited lower bookings and soaring jet fuel costs. Housebuilders issued six profit alerts in the second quarter and eight in the first half of 2026. The Independent reported that the first-half figure was the highest for that industry since the start of the Covid pandemic.

UK listed firms overall made 59 profit alerts in the second quarter, up from 55 in the first quarter. More than half, or 53 percent, of the second-quarter alerts cited policy change and geopolitical uncertainty as a major factor. The Independent reported that this share was the highest quarterly proportion in more than 25 years of EY analysis.

Rising costs appeared in 27 percent of alerts, contract and order cancellations or delays in 25 percent, and weaker consumer confidence in 14 percent. Jo Robinson, an EY-Parthenon partner, stated that pressure and profit warnings are increasingly concentrated in sectors facing rising costs, cautious consumers and tighter credit conditions.

She added that the conflict in the Middle East has now triggered more than two fifths of recent warnings, while businesses also face policy uncertainty both domestically and abroad.