EasyJet has reported a slowdown in summer flight bookings due to the war in the Middle East, while the rising cost of oil is expected to lead to higher air fares by the end of the season, the airline's chief executive has warned.
Kenton Jarvis said that although the carrier has hedged much of its fuel into next year, avoiding the full impact of soaring kerosene prices, it is “unavoidable” that some costs will be passed on to passengers. He noted that forward bookings for summer have started to decline, with flights to Turkey, Cyprus and Egypt hit hardest due to their proximity to the conflict. In contrast, destinations such as Spain, Greece and Portugal are “holding up pretty firmly”.
Jarvis compared the current situation to the Ukraine crisis and the Hamas attacks on Israel, suggesting that the drop in bookings typically lasts about six weeks. He added that EasyJet's hedges mean it is paying $700 per tonne for jet fuel, while spot prices have reached $1,850, making fare rises likely by the end of peak summer.
The comments came as EasyJet reopened a base at Newcastle airport, closed in 2020 during the pandemic. The base will create 140 jobs for pilots, cabin crew and engineers, and support over 1,000 new roles in the north-east. The airline will operate up to 800,000 holidaymakers from Newcastle this summer, with new routes mainly to southern Europe and the Mediterranean, as well as Turkey and Egypt.
North East mayor Kim McGuinness welcomed the investment, saying the airport is “not just where holidays begin” and that tourism is a key part of her growth plans. EasyJet also announced it will switch to lighter seats from Norfolk-based Mirus Aircraft Seating, which are about 20% lighter, to help curb emissions.
