EasyJet has reported that its summer holiday bookings are behind last year’s levels, as the Middle East conflict weighs on consumer confidence and passengers delay booking. The budget carrier also revealed an unexpected £25m hit on jet fuel costs in March following the start of the US-Israel war on Iran.
Despite the uncertainty, the airline stressed there is no disruption to fuel supplies and it has visibility of supplies over a rolling four-week period. Chief executive Kenton Jarvis said fuel supplies are diversifying, with more production in the Americas and Norway, and the airline has no intention of cutting summer flights. “If the fuel’s there, we will fly it,” he added.
EasyJet posted a £552m pre-tax loss for the six months to 31 March, compared with a £394m loss a year earlier. The company has hedged 72% of its fuel needs for the summer period but has suspended further hedging due to oil price volatility. It has also raised minimum fares and is reviewing discretionary costs.
Jarvis called on European airports to use flexibility granted by the European Commission to avoid long border queues, particularly over the bank holiday and half-term period. He described lengthy delays from the EU entry-exit system as “inexcusable” and urged airports to revert to manual passport stamping if necessary.
Despite the challenges, Jarvis said the airline is “well placed to manage the current environment” and encouraged customers to “book with confidence” for summer travel.
