EasyJet flags uncertain outlook as fuel costs rise and bookings weaken

May 21 (Reuters) - British budget airline easyJet reported a first-half ​loss of ‌552 million pounds ($741.39 million) on Thursday, in line with ⁠previous guidance, but said its full-year outlook ⁠remains uncertain as the ​Iran war drives up fuel costs and dampens summer bookings.

The conflict has disrupted global aviation, sending jet fuel prices up ​more ‌than 80% since late February and forcing airlines to raise fares, cut capacity or absorb margin pressure as flows through the Strait of Hormuz are constrained.

European airlines have ​downgraded profit expectations in recent weeks as the prospect of ‌a prolonged conflict pushes fuel costs higher, particularly as hedges expire.

Easyjet's first-half loss was ‌broadly in line with the 540 millionpound to 560 million pound loss it had warned of in April. "Our strategy is clear - ​through disciplined growth, accelerated upgrading, and continued expansion of easyJet holidays, we aim ‌to bounce back from this year’s Middle East-related setbacks," Chief Executive Kenton Jarvis said in a statement.

The carrier said its ⁠second-half ⁠bookings were 58% sold as customers booked ‌vacations closer to home. Easyjet's April-September bookings were 77% sold at the same ​point ​a year earlier.

However, in-month bookings were seeing year-on-year strength, ‌as travellers continue to book their trips closer to their departure dates.

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