EasyJet says Middle East conflict cost it £25m in higher fuel prices last month
EasyJet has announced the conflict in the Middle East cost it about £25m in higher jet fuel prices last month.
The airline said it expects to report a headline loss before tax of between £540m and £560m for the six months to the end of March.
Oil prices – which have a significant effect on the cost of jet fuel – soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz.
Bookings are down two percentage points for the three months to the end of both June and September, compared with a year ago.
The warning over bigger-than-expected first half losses saw shares in easyJet fall nine per cent in early trading on Thursday, before settling about 3 per cent lower.
Kenton Jarvis, easyJet chief executive, said: “Our H1 financial performance worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets. EasyJet’s financial strength from our investment grade balance sheet and £4.7bn of liquidity mean we are well placed to navigate current geopolitical challenges while remaining focused on our medium term targets.”