EasyJet has announced fare increases of up to £3 to offset a sharp rise in jet fuel costs triggered by the ongoing conflict in Iran. The budget airline will add £2 or £3 to its minimum ticket prices for the upcoming winter season, as it reported a decline in summer bookings.
Summer Bookings Drop Amid Uncertainty
The carrier revealed it has sold 58% of flights for the April to September period, down compared to the same timeframe last year. Chief Executive Kenton Jarvis noted that customers are adopting a wait-and-see approach, with average summer fares expected to remain broadly in line with the previous year. "Customers are watching and waiting," Jarvis said. "That is the experience we have seen for the past two months and we expect that to continue through the summer. Prices will remain competitive through the summer."
Fuel Supply Assurance
Jarvis sought to reassure passengers about potential flight cancellations, stating that EasyJet is well stocked with jet fuel and does not anticipate disruptions. "We stay in very close contact with our fuel suppliers, airports, governments, and they are equally raising no issues looking forward," he told the BBC. He highlighted that fuel suppliers have diversified sources, increasing production in Norway, West Africa, and the Americas, while refining capacity for jet fuel has grown outside the Gulf region. "I would absolutely say don't panic about it," Jarvis added. "At easyJet, we fully intend to fly the summer schedule that we have on sale, and we also have a 'book with confidence' promise that we will not put fuel surcharges on, so once you've booked, that will be the price you pay."
Financial Impact and Cost Review
The Middle East conflict has cost EasyJet an additional £25 million in fuel expenses in March alone. To mitigate this, the airline is increasing minimum fares by £2 or £3, though the exact amount varies by route. EasyJet's average winter fare last year was just under £67. The company also announced an "active review of all discretionary cost." When asked about potential job losses, Jarvis said: "When it comes to employment, we are taking a very prudent view."
Border Delays Criticised
Jarvis also criticised delays at European airports caused by the rollout of the new Entry-Exit System (EES), which involves fingerprinting and facial scanning checks. He described the long queues as "unacceptable" and "really inexcusable" for customers. He urged EU countries to follow Greece's example, which has effectively suspended biometric checks for British citizens to prevent major disruptions during the summer. While suggesting other nations at least suspend the new checks at peak times, Jarvis advised passengers to "arrive in plenty of time."
EasyJet's half-year losses widened from £401 million to £552 million, reflecting the challenging environment. Holiday-focused airlines typically generate the bulk of their profits during the summer season.
