EasyJet Profits Plunge 70% Amid Rising Fuel Costs and Middle East Conflict

Key Facts

As geopolitical pressures reshape operating costs across the global aviation sector, EasyJet faced significant headwinds during its latest quarter. The airline reported a sharp decline in third-quarter headline profit before tax to £85 million, down from £286 million in the previous year. This 70% plunge was primarily driven by surging aviation fuel costs and weakened booking demand linked to the ongoing conflict in the Middle East.

While group revenue rose 2% to £2.98 billion, fuel costs jumped 17% to £732 million, with prices for unhedged requirements peaking at approximately $1,800 per metric tonne in April. Per market data, the holidays business proved more resilient, with profit before tax slipping only 2% to £84 million as customer numbers grew 8%, helping offset the impact of load factors falling to 88.9%.

Looking ahead, EasyJet expects seat capacity to grow by 3% for the full year, while attention remains fixed on energy price stability and late booking demand trends.