EasyJet Profits Nosedive on Mideast War
The airline said profit fell as fuel costs rose £105 million and average fares dropped 1% to support weaker demand.
- On Thursday, EasyJet reported a 70 per cent profit slump to £85 million for the three months to June 30, citing elevated fuel prices and reduced demand linked to the Middle East conflict.
- The airline remains the subject of a bidding war between Apollo, a US private equity firm, and rival US investment firm Castlelake, with Apollo's £5.7 billion offer surpassing Castlelake's £5.5 billion proposal.
- Fuel costs rose by £105 million while passenger numbers fell 0.4 per cent to 25.8 million in the quarter. Chief Executive Kenton Jarvis noted that late bookings are improving despite the demand pressures.
- After plunging 15 per cent on Wednesday, shares lifted 6 per cent in morning trading on Thursday, reflecting investor uncertainty about whether the takeover bids will ultimately proceed.
- The European Union is reviewing ownership rules that could delay Apollo's bid. Jarvis stated the assessment is "an ongoing process" unrelated to the acquisition timeline, though it could extend two to three years.
14 Articles
14 Articles
EasyJet, the target of a purchase offer by Apollo, registered a fall in profit before taxes in the third quarter, under pressure from rising fuel prices and lower consumer demand due to the conflict in the Middle East. Exclusive material for subscribers. To have full access, access the link of the material and register.
The group's pre-tax profit came in at £85 million (nearly €100 million), compared to £286 million last year, representing a 70% plunge. Performance "was impacted by higher fuel prices and a decline in consumer demand following the outbreak of the conflict in the Middle East," the group explained in a statement. Fuel costs increased by £105 million compared to last year, it added. "The final result for the 2026 financial year will still depend …
The British airline EasyJet posted a 70% drop in profit over the quarter, penalised by the conflict in the Middle East and rising fuel costs The airline
Longer routes, higher costs, 26,000 cancellations: US-Iran conflict hits Indian airlines
Indian airlines have cancelled approximately 26,000 international flights due to Middle East airspace restrictions. These disruptions have led to flight diversions and delays, impacting airline operations significantly. Longer flight routes are increasing fuel consumption and raising overall operating expenses for carriers. Airlines are also experiencing substantial revenue losses as the conflict continues. Despite these challenges, carriers are…
Coverage Details
Bias Distribution
- 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
