EasyJet summer bookings fall amid Iran conflict uncertainties

Budget airline easyJet reported that its summer holiday bookings are trailing last year’s levels as the conflict with Iran weighs on consumer confidence, prompting passengers to delay trip reservations.

The carrier said it incurred an unexpected additional £25 million on jet fuel in March after the United States and Israel launched military operations against Iran.

EasyJet stated it is experiencing no disruption to fuel supplies and maintained its usual visibility over a rolling four-week period. The airline does not expect to cancel further flights this summer, despite Ryanair CEO Michael O’Leary’s April warning that the UK is the most vulnerable European country to potential jet fuel shortages if the Strait of Hormuz remains closed.

The airline urged customers to “book with confidence,” echoing comments from rivals including Ryanair, amid signs that worries over fuel shortages and possible flight cancellations are discouraging travelers.

EasyJet said customers remain hesitant to book far in advance, with many waiting until the month of departure to commit to travel.

“We continue to see positive late bookings since the conflict began; however, overall bookings for the summer period are behind where they were at this point last year,” the airline said.

The company has hedged 72% of its fuel needs for the next six months, covering the busy summer period through September. However, it temporarily suspended short-term hedging due to “elevated near-term fuel prices.”

EasyJet reported a pre-tax loss of £552 million for the six months to March 31, compared with a loss of £394 million in the same period a year earlier. The carrier typically generates profits in the second half of the year, which includes the peak summer season.

The airline said it raised its minimum ticket fare in response to higher fuel costs and is actively reviewing all discretionary spending.

Kenton Jarvis, easyJet’s chief executive, said the airline is well positioned to manage the current situation: “Despite conflict in the Middle East creating near‑term uncertainty, easyJet is well placed to manage the current environment, supported by one of the strongest investment‑grade balance sheets in European aviation.”

He added: “EasyJet is not seeing any disruption to fuel supply, we continue to operate normally and our customers should book with confidence.”

The airline reviewed its summer flight schedule in March after the outbreak of the conflict, resulting in a 0.3% net reduction in seats. It now intends to operate its full summer schedule as planned.

The carrier reported strong demand for its holiday packages, with customer numbers rising 22% in the six months to March compared with a year earlier.