Airline flags uncertainty over demand and costs amid US–Iran tensions.
London: British low-cost airline EasyJet on Thursday said it expects a deeper first-half loss compared with the previous year, after the Middle East conflict pushed jet fuel prices higher.
EasyJet forecast a headline pre-tax loss of between £540 million and £560 million ($733 million to $760 million) for the six months ending in March, compared with £394 million in the same period a year earlier.
The airline said fuel costs in March were affected by an escalation of the Middle East conflict, resulting in around £25 million in additional expenses. It also noted that its performance was impacted by other factors, including increased competition for passengers.
EasyJet is set to publish its full first-half earnings on May 21.
“Our financial performance deteriorated year on year, affected by the conflict in the Middle East and competitive pressures in certain markets,” group chief executive Kenton Jarvis said in Thursday’s statement.
The airline said the US–Iran conflict has “introduced near-term uncertainty around fuel costs and customer demand,” but added that it remains “well positioned to manage this volatility.”
It also noted that the first-half results were additionally affected by an increase of around £30 million in legal provisions to cover “a number of historic cases.”
