EasyJet posts deepening loss as fuel costs surge – Daily Business

EasyJet: higher costs

Budget airline EasyJet posted a first-half loss of £552 million, in line with its recent forecast, as the Iran war continued to weigh on jet fuel costs and consumer bookings.

The latest figure represents an increase from the £394m loss in the previous year following £25m in additional fuel costs and £32m in increased legal provisions.

There was a 6% rise in passenger numbers to 42 million and a 2 percentage point improvement in load factor to 90%.

The war has disrupted the global aviation industry, sending jet fuel prices soaring more than 80% since late February.

Airlines have been forced to raise fares, slash capacity or face squeezed margins as the blockade of the Strait of Hormuz chokes off critical oil supplies.

The carrier said its second-half bookings were 58% sold as customers booked holidays s closer to home. Easyjet’s April-September bookings were 77% sold at the same point a year earlier.

Kenton Jarvis, CEO, said: “Despite conflict in the Middle East creating 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.

“We delivered a strong operational performance in the first half, with positive demand driving a 90% load factor, up 2 ppts vs last year, and further improved customer satisfaction, alongside continued growth in our holidays business.

“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.

“Our strategy is clear – through disciplined growth, accelerated upgauging, and continued expansion of easyJet holidays, we aim to bounce back from this year’s Middle East related setbacks, and then further progress towards our medium-term financial targets and deliver attractive shareholder returns as the operating environment normalises.“

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