Loveholidays, the online travel agent expected to be London's first major IPO of 2026, is preparing to delay its £1bn flotation amid market turmoil and travel chaos following Iran's retaliation against US and Israeli strikes. The company had planned to announce its intention to float in early March but is now reconsidering the timing.

Discussions about postponing the listing have intensified as shares in Loveholidays' closest listed peer, On The Beach, fell 4.2% in the past week, while tour operator Tui lost 11%. The company, which served 4.7 million customers last year and sells package holidays to destinations including Dubai and Cyprus, has been owned since 2018 by private equity firm Livingbridge, which acquired it for about £190mn.

The delay would be a setback for the London Stock Exchange as it hopes to reopen the market for significant initial public offerings. Norwegian software business Visma may also push back its €19bn listing, while Japanese payments company PayPay has delayed its New York IPO roadshow. However, some City advisers note that investors remain willing to back resilient businesses, with the equity sell-off not as severe as the gilt market rout.