Shares in UK travel operator Jet2 slumped by 15% on Thursday after the company cut its winter seat capacity and warned of a “difficult market,” citing a slowdown in consumer confidence and later-than-ever holiday bookings.

The Leeds-based airline and tour operator said it would cut 200,000 seats from its winter schedule, reducing capacity from 5.8 million to 5.6 million, as it adjusted to weaker demand. Jet2 told investors that earnings for the year would now likely fall at the lower end of forecasts.

The company said the consumer environment had become “less certain,” with many customers delaying their holiday decisions until close to departure. This trend, it added, left the group with “limited visibility” on forward sales and forced it to keep prices from rising significantly despite higher costs.

Passenger numbers for package holidays rose just 2% this summer, down from 8% growth the previous year, while flight-only bookings jumped 17%. A viral summer advertising campaign featuring a Jess Glynne song may have raised brand awareness, but Jet2 admitted it would now be “reallocating marketing monies” to reflect shifting consumer habits.

Chief executive Steve Heapy said that despite the market headwinds, the company remained confident in its “proven business model, loyal customer base, flexible approach to capacity management and award-winning service.” He insisted these factors would underpin both this year’s results and longer-term growth.

The warning follows a strong start to the summer, when Jet2 posted record profits but noted early signs of slowing demand. Analysts have linked the downturn to economic uncertainty, a hot start to summer across Europe, and pressure on household budgets.

Shares in rivals also slipped following Jet2’s update, with easyJet down nearly 4% in early trading and IAG, the owner of British Airways, initially dipping before recovering most losses.