EasyJet has sought to reassure passengers that it intends to operate its full summer schedule despite concerns over fuel supply disruptions linked to the ongoing Iran oil crisis. Chief executive Kenton Jarvis stated that the airline is not seeing any disruption to fuel supply and urged customers to book with confidence.
Fuel Supply and Industry Impact
The wider aviation industry has faced challenges, with some airlines reducing schedules due to a surge in jet fuel prices. This spike is largely attributed to Iran's control over tankers navigating the Strait of Hormuz. However, EasyJet reported that it has normal supply visibility for the next four weeks and expects to operate the full summer schedule on sale.
CEO's Assurance
Speaking on BBC Radio 4's Today programme, Mr Jarvis emphasised: “EasyJet is not seeing any disruption to fuel supply. We continue to operate normally and our customers should book with confidence, taking advantage of our great value fares.” He added that fuel suppliers have diversified successfully, with increased production in Norway, West Africa, and the Americas, and refining capacity for jet fuel has grown outside the Gulf region.
Bookings and Financial Performance
EasyJet reported that summer flight bookings are lower than the same period last year due to uncertainty caused by the Middle East conflict. The airline has sold 58% of its seats for the six months to the end of September, down two percentage points year-on-year. However, short-notice bookings in the month of departure have increased.
The group posted a half-year pre-tax loss of £552 million, in line with its April trading update, compared to a loss of £401 million a year ago. EasyJet warned that its finances up to the end of September will be impacted by higher fuel costs and near-term uncertainty around customer demand, with the conflict costing about £25 million in higher jet fuel prices in March alone.
Book with Confidence Promise
Mr Jarvis reiterated: “I would absolutely say don’t panic about it. 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.” He concluded that despite the near-term uncertainty, EasyJet is well placed to manage the current environment, supported by one of the strongest investment-grade balance sheets in European aviation.
