EasyJet has reported a 70 per cent slump in pre-tax profits to £85 million for the three months to 30 June, compared with £286 million a year earlier. The budget airline attributed the sharp decline to soaring fuel costs and weaker bookings triggered by the ongoing Middle East conflict.
The company said its fuel bill rose by £105 million in the quarter, driven by the surge in energy prices following the Iran war. Passenger numbers fell 0.4 per cent to 25.8 million, while the load factor — a key measure of how full flights are — also declined.
EasyJet noted that customers are increasingly booking closer to departure, with strong late bookings partially offsetting weaker demand. However, the airline cautioned that the full-year outcome “remains dependent on the important remaining bookings, as well as fuel prices, which continue to be volatile.”
The update comes just weeks after EasyJet agreed in principle to a £5.7 billion takeover by US private equity firm Apollo at £7.15 a share. Apollo’s offer muscled in on a rival £5.5 billion proposal from Castlelake, which EasyJet had also accepted days earlier.
Chief Executive Kenton Jarvis said: “We have continued to manage the impact of the Middle East conflict, and its effect on fuel prices and booking trends, during the quarter. Pricing has been attractive, driving strong late booking demand for our flights and holidays.” He added that as consumer confidence increases, the load factor gap is closing for peak summer and the booking curve is extending.
