LONDON, July 23 – British low-cost carrier easyJet reported a sharp decline in quarterly earnings after higher fuel costs and weaker travel demand, linked to the conflict in the Middle East, weighed on its financial performance during the peak travel season.
The airline posted a headline pre-tax profit of £85 million for the quarter ended June 30, down 70% from £286 million in the same period last year. Despite the steep decline, the result came in ahead of analysts’ expectations.
easyJet said its fuel expenses rose by around £105 million year-on-year as oil prices climbed following heightened tensions in the Middle East. The airline also reported softer booking trends as geopolitical uncertainty dampened consumer confidence and travel demand.
Group revenue increased 2% to £2.98 billion, supported by continued growth in ancillary services and its holidays division. However, passenger revenue slipped 1%, while passenger numbers eased to 25.8 million and the load factor declined to 88.9% from 90.2% a year earlier.
Chief Executive Kenton Jarvis said booking momentum has strengthened ahead of the peak summer travel period, with customers increasingly making reservations closer to their departure dates. The company added that 68% of its fourth-quarter capacity has already been sold, signaling resilient demand despite ongoing geopolitical uncertainty.
Looking ahead, easyJet said its full-year performance will depend on fuel prices, geopolitical developments and late summer booking trends. The airline maintained its outlook for continued capacity growth and further expansion of its holidays business.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök