British low-cost airline EasyJet said on Thursday that its losses increased in the six months leading up to the end of March as the Iran war increased jet fuel costs and weakened booking visibility.
The conflict continues to disrupt global aviation; European jet fuel prices since late February due to shipping disruption in the Strait of Hormuz, a vital transit point for about a fifth of the global oil supply %Increased by more than 80’.
Airlines across Europe responded by increasing their fares. reduction of costs and warning of pressure on margins.
EasyJet, in the first half of its fiscal year, compared to the previous year %£377 million (506 million) with 27 increases $) reported total after-tax loss in the amount. The airline said U.S.-Iran tensions also disrupted travel demand.
The airline said the Iran war had also disrupted travel demand and delayed bookings for the busy summer season.
Number of passengers during the reporting period %Comes with 6 increases %It increased by 12 to £3.95 billion (€4.63 billion). The occupancy factor, which is a measure of how full the airline's planes are, compared to the previous year %2 increments %It's up to 90’.
The group said strong growth in the holiday division helped support performance and that the number of customers at easyJet Holidays’ was in the first half. %He said he's up 22.
EasyJet said the conflict in the Middle East’ was affected by high fuel costs and low forward visibility“.
An earlier estimate that the war added £25 million (€29 million) to the fuel bill was confirmed.
Although the group did not see any cuts in fuel supplies, the airline warned that the second half of its fiscal year will be affected by clashes in “Middle East’, high fuel costs and short-term uncertainty over customer demand.
“General bookings for the summer period lagged behind their level at this point last year, ” added.
EasyJet said it was 72 percent protected against increases in fuel prices over the next six months, providing some protection against further increases in oil prices.
The airline also reported an increase of £32 million (€37 million) in legal provisions linked to a number of historic cases.
Kenton Jarvis, chief executive of “, said that EasyJet’ is in a good position to manage the current environment, although conflicts in the Middle East’ have created uncertainty in the short term.
During his meeting with journalists, he added that the minimum ticket prices for the calmer winter season will increase.
Following the update, EasyJet’in shares approx. %2 increased but suffered minor losses in the afternoon.
Hargreaves Lansdown stock analyst Aarin Chiekrie, “, said the image is still compelling”.
“Demand is getting hit; Bookings for the second half are two percentage points below last year's levels, as sun-seekers leave later to lock into their travel plans, ” said.
Even if the conflict in the Middle East is resolved in the near term, fuel prices are likely to remain high for some time, “ added.
Rival airline Ryanair said earlier this week that its annual net profit had increased by more than one-third, but warned that the Iran war is overshadowing its outlook for the coming year.
