Europe's leading travel operator Tui has seen a 10% fall in revenue from summer holiday bookings made by UK customers, who have become more cautious due to the Iran war.

Overall, it noted a shift in demand from Eastern to Western Mediterranean destinations, with customers also booking trips closer to departure dates.

Tui is cutting the number of seats it purchases from its airline partners by 4-5% over the summer, while maintaining its own flying programme at current levels.

While it is reducing seats, chief executive Sebastien Ebel said he does not expect jet fuel shortages over the coming weeks.

There have been concerns that unless the Strait of Hormuz - a key route for oil and liquefied natural gas - reopens soon, there could be physical shortages in some areas in the coming months.

The strait's effective closure has pushed up the price of jet fuel and some airlines have responded by increasing ticket prices, while others have trimmed capacity in a bid to attract hesitant customers.

EU energy commissioner Dan Jorgensen told reporters on Wednesday the European Union does not expect a serious jet fuel supply issue in the short term due to the US-Israel war with Iran.

In its results for the first three months of the year, Tui reported a €40m euro (£34.7m) hit to profits due to the Middle East conflict, including from repatriation and welfare costs and lost income.

The company reported an underlying loss before interest and tax of €188m for the quarter - an improvement from the €207m loss last year.

Overall Tui reported an overall 7% fall in revenue from bookings for this summer compared with last year.

Russ Mould, investment director at AJ Bell, said while the holiday and airline industry "is at pains to stress there are no current fuel shortages....consumers are getting jittery".

"There needs to be greater clarity on alternative sources of fuel to the Middle East before the public feels convinced to hit the buy button for their summer holiday."

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said consumers "have understandably become more cautious about splashing out on a holiday".

"Despite this, it doesn't appear that holidaymakers are abandoning their vacation plans completely.

"Recent data suggests they're simply leaving it until later to book. And while that's not ideal, it's better than complete demand destruction."

It comes as research from Barclays earlier this week suggested spending at travel agents was down 7.5% in April, and spending on holidays and travel fell by 5.7% in April, compared with last year.

Owner of UK independent travel agency Hays Travel, Dame Irene Hays, said the travel industry was "suffering" because of the uncertainty around cost of living and the situation in the Middle East.

However, the cruise industry was doing very well and tour holidays were "incredibly buoyant," Dame Irene told BBC's Today programme on Tuesday.

And outside of America and the Middle East, there's been a lot of success in destinations such as Canada, Japan, Australia, South Africa and Thailand.

Over the last 12 months people have been booking closer to their departure dates, Dame Irene said.

"Where previously people would be booking seven months plus in advance, that's narrowed to 16 weeks," she said.

While there were still good deals to be had, people should book earlier if they want choice, she added.

"It's vitally important that we have some removal of this level of uncertainty and some clarity as quickly as possible," Dame Irene said.

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Tui reports 10% drop in summer sales as UK customers worry about Iran war

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