easyJet warns of higher fuel costs as first-half loss widens

(Alliance News) - easyJet PLC on Thursday reported a wider interim loss, and said it has seen strong late bookings for the second half but higher fuel costs and lower visibility.

The Luton, Bedfordshire-based budget airline said its pretax loss widened to GBP552 million in the six months to the end of March from a GBP401 million loss a year ago.

Total revenue increased 12% to GBP3.95 billion from GBP3.53 billion. However, headline earnings before interest, tax, depreciation and amortisation costs jumped 16% to GBP4.09 billion from GBP3.54 billion.

Airline total headline costs per available seat kilometre increased 4.7% to 6.73 pence from 6.43p, including previously flagged one-offs and GBP25 million in additional fuel costs incurred in March.

easyJet said forward bookings have been impacted by the conflict, resulting in a later booking curve. However, bookings in the month of departure "continue to show year-on-year strength," it said.

The company said it intends to operate the full on sale summer schedule and has "normal supply visibility" for the next four weeks.

Chief Executive Kenton Jarvis said the airline is "not seeing any disruption to fuel supply" and urged passengers to "book with confidence," PA reported.

Asked about the issue in an interview on BBC Radio 4's Today programme, he said: "We stay in very close contact with our fuel suppliers, airports, governments, and they are equally raising no issues looking forward.

"What is true is obviously there's a lot less oil coming from the Gulf region, but fuel suppliers have successfully diversified, with production increased in Norway, in West Africa, in the Americas, and refining capacity for jet fuel has also increased substantially outside of the Gulf region."

Looking ahead, easyJet said there "remains uncertainty" over the financial outturn for financial 2026 due to the "lower than normal visibility of forward bookings".

For the airline, the second half is 58% sold, down 2 percentage points on-year.

The firm expects second half headline CASK ex fuel to increase by low single digits, while fuel CASK remains uncertain due to price volatility.

easyJet is 72% hedged at USD726 per metric tonne. It said every USD100 per metric tonne movement in price equates to around GBP35 million in fuel costs.

easyJet holidays customers are expected to grow by low double digits in financial 2026 from a base of 3.1 million customers.

CEO Kenton Jarvis said: "Our strategy is clear - through disciplined growth, accelerated upgauging, and continued expansion of easyJet holidays, we aim to bounce back from this year's Middle East related setbacks, and then further progress towards our medium-term financial targets and deliver attractive shareholder returns as the operating environment normalises."

Shares in easyJet were up 1.7% at 353.00 pence on Thursday morning in London.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

easyJet