UK budget airline EasyJet has today reported a first-half loss of £552m, in line with previous guidance, but said its full-year outlook remains uncertain as the Iran war drives up fuel costs and dampens summer bookings.
The conflict has disrupted global aviation, sending jet fuel prices up more than 80% since late February and forcing airlines to raise fares, cut capacity or absorb margin pressure as flows through the Strait of Hormuz are constrained.
European airlines have downgraded profit expectations in recent weeks as the prospect of a prolonged conflict pushes fuel costs higher, particularly as hedges expire.
Easyjet's first-half loss was broadly in line with the £540-560m loss it had warned of in April.
"Our strategy is clear - through disciplined growth, accelerated upgrading, and continued expansion of easyJet holidays, we aim to bounce back from this year's Middle East-related setbacks," chief executive Kenton Jarvis said in a statement.
The carrier said its second-half bookings were 58% sold as customers booked vacations closer to home. Easyjet's April-September bookings were 77% sold at the same point a year earlier.
However, in-month bookings were seeing year-on-year strength, as travellers continue to book their trips closer to their departure dates.
