EasyJet's first-half financial year saw a significant deepening of losses, totaling £552 million ($741.39 million), an increase of 27% compared to the prior year. This figure was broadly in line with their earlier forecast of £540 million to £560 million. The airline attributed these losses to the ongoing Middle East conflict, which led to higher fuel costs and a decline in future booking visibility.
The conflict specifically added £25 million (€29 million) to easyJet's fuel bill in the first half. While the airline has hedged 72% against fuel price rises for the next six months, offering some protection, analysts like Duncan Ferris of Freetrade highlighted that with spot prices significantly higher than the hedged price, easyJet remains somewhat exposed to further increases. Each $100 movement in fuel prices accounts for approximately £35 million in fuel costs.
Booking patterns have also shifted, with summer bookings tracking two percentage points below last year's levels. This indicates that travelers are delaying their booking decisions and, in some cases, opting for closer-to-home destinations. Despite the challenging environment, EasyJet's in-month bookings remain strong year-on-year, suggesting a continued trend towards later travel planning. Chief executive Kenton Jarvis noted that while the Middle East conflict creates near-term uncertainty, easyJet is well-positioned to manage the current environment. Shares in easyJet initially rose by nearly 2% following the announcement but later slipped into small losses.
