EasyJet's chief executive, Kenton Jarvis, has warned that the war in the Middle East is affecting flight bookings and that rising oil prices will likely lead to higher air fares by the end of summer. The airline has hedged much of its fuel costs into 2027, avoiding immediate spikes, but Jarvis said it is 'unavoidable' that some costs will be passed on to passengers.
Forward bookings for summer have slowed, with flights to Turkey, Cyprus and Egypt hit hardest due to their proximity to the conflict. Passengers are instead opting for Spain, Greece and Portugal, which Jarvis described as 'holding up pretty firmly'. He compared the situation to previous crises, noting that booking drops typically last about six weeks.
EasyJet is paying $700 per tonne for jet fuel under its hedges, while current spot prices have reached $1,850. Jarvis said fares are likely to rise by the end of peak season, as fuel costs feed into consumer prices. He noted that most European airlines are well hedged, but market views suggest fuel prices may come down in six months.
The comments came as easyJet reopened a base at Newcastle airport, closed in 2020 during the pandemic. The base will create 140 jobs and support over 1,000 more in the north-east, flying up to 800,000 holidaymakers this summer. New routes include southern Europe, the Mediterranean, Turkey and Egypt, with possible capacity reallocation if the conflict continues.
EasyJet will not operate flights to London from Newcastle, citing its policy of not flying routes where train journeys are under two-and-a-half hours. The airline also plans to reduce emissions by installing lighter seats from Norfolk-based Mirus Aircraft Seating, which are about 20% lighter than current models.
