London: British low-cost airline EasyJet has warned of a significantly deeper first-half loss, citing rising jet fuel prices triggered by escalating tensions in the Middle East.
The airline said it expects a headline loss before tax between GBP540 million and GBP560 million for the six months ending March. This marks a sharp increase compared to a loss of GBP394 million reported during the same period last year.
Fuel prices hit performance
According to the company, the surge in fuel costs—largely driven by the ongoing Middle East conflict—added approximately GBP25 million in extra expenses in March alone. The airline noted that volatility in oil markets has directly impacted operating costs.
Competition and legal costs add pressure
Beyond fuel expenses, EasyJet’s financial performance was also affected by intense competition across key travel markets, which put pressure on pricing and demand.
Additionally, the airline reported a GBP30 million increase in legal provisions, linked to several historic cases, further weighing on its earnings.
Outlook remains uncertain
Chief Executive Kenton Jarvis acknowledged that the airline’s performance has declined compared to last year, attributing the downturn to geopolitical tensions and a challenging competitive environment.
The company also highlighted that the US-Iran tensions have introduced short-term uncertainty around both fuel costs and customer demand. However, EasyJet stated it remains well-positioned to manage market volatility.
EasyJet is scheduled to release its full first-half earnings report on May 21, which will provide a clearer picture of its financial performance and outlook for the rest of the year.
