EasyJet H1 Losses Set to Widen to £560 Million as Fuel Costs Surge

EasyJet expects its first-half pre-tax loss to widen to £560 million, driven by surging fuel costs and heightened geopolitical instability. Highlighting the sector's vulnerability, fuel costs now comprise 42-45% of Ryanair's operating expenses, making the carrier highly sensitive to price fluctuations. Consequently, Ryanair is considering fare increases and selective route cuts to preserve margins as its fuel hedge gains begin to fade. Despite these cost pressures, analysts have set a price target of $75.77 for Ryanair (RYAAY), representing a 32% upside potential. This outlook is further complicated by an IEA warning that Europe’s jet fuel supplies could be depleted in six weeks if regional supply disruptions persist. Investors remain focused on how low-cost carriers will navigate the dual threats of energy volatility and slowing summer bookings.