EasyJet has reported a decline in summer flight bookings compared to last year, attributing the decrease to uncertainties arising from the Middle East conflict. The budget airline disclosed that it has sold 58% of its seats for the upcoming six months, showing a two-percentage-point drop from the same period in the previous year. Despite this, last-minute bookings made within the month of departure have actually increased year-on-year.
The company posted a pre-tax loss of £552 million for the first half of the year, in line with its previous trading update from April, as opposed to a loss of £401 million in the previous year. EasyJet highlighted that the ongoing conflict in the Middle East is impacting its financial performance, leading to higher fuel costs and causing uncertainties in customer demand.
In March alone, the airline faced an additional cost of around £25 million due to elevated jet fuel prices caused by the surge in oil prices following disruptions in the Strait of Hormuz. Concerns have been raised about potential fuel shortages affecting UK flights, but EasyJet’s CEO, Kenton Jarvis, reassured passengers that there are no disruptions in fuel supply and encouraged them to book with confidence.
Despite the challenges, Jarvis expressed confidence in EasyJet’s ability to navigate the current environment, emphasizing the airline’s strong financial position in European aviation. Meanwhile, Jet2 announced increased production and additional imports from unaffected regions, assuring customers of continued service without additional charges despite rising fuel costs.
Jet2 affirmed its commitment to operating normally throughout the summer, promising flexibility and swift refunds in case of any flight or holiday cancellations. The airline’s dedication to customer service was highlighted, referencing its efficient refund processes during the Covid pandemic and its ongoing commitment to prioritizing customer needs.