EasyJet CEO: Don’t panic over summer jet fuel supplies

The CEO of EasyJet has urged holidaymakers not to panic over potential jet fuel shortages that could disrupt summer flights, amid heightened Middle East tensions.

Kenton Jarvis told the BBC that the airline has experienced no fuel supply problems and that travelers can book with confidence.

The Iran conflict has effectively blocked the strategic Strait of Hormuz, a crucial route for Europe’s jet fuel, nearly doubling prices.

While EasyJet confirmed its supplies remain unaffected, the airline noted that customers are booking later due to uncertainty from the Middle East conflict.

On Wednesday, plans to ban UK imports of diesel and jet fuel made from Russian oil in third countries were weakened due to supply and price concerns.

However, Jarvis told the BBC’s Today program: “We’ve seen absolutely no issues with fuel supply in any of our airports in the UK across Europe or indeed beyond.”

He added that the carrier maintains close contact with its fuel suppliers, airports, and governments, and “they’re equally raising no issues looking forward.”

“I would absolutely say don’t panic about it, at EasyJet we fully intend to fly the summer schedule that we have on sale,” he said, adding that the airline will not impose fuel surcharges on fares.

Jarvis noted that fuel production has increased in Norway, West Africa, and the Americas, while “refining capacity for jet fuel has also increased substantially outside of the Gulf region.”

One change EasyJet has observed is a “shortened booking window,” with strong demand for flights departing within the same month, Jarvis said.

“As you look further out people are more cautious, people are waiting and watching, but they are booking… and I expect that strong late booking market to run through the summer.”

His comments came as EasyJet reported a pre-tax loss of £552 million for the six months to March. Airlines typically post losses over winter and aim for profits during the peak summer season.

The carrier reiterated that its second-half financial performance will be affected by higher fuel costs and uncertainty over customer demand.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said EasyJet is “one of the more sensitive European airlines to fuel price fluctuations.”

“The recent spike in fuel prices looks set to take a big toll on profitability,” he said. “Even if the Middle East conflict is resolved in the near term, fuel prices are likely to remain elevated for some time.”