EasyJet Expects Up To $759M First-Half Loss Amid Middle East Conflict

EasyJet said it expects to report a headline loss before tax of between £540 million ($732 million) and £560 million for the first half of its financial year 2026 as the Middle East conflict affects financial performance.

 

The UK-based LCC also said it incurred around £25 million of additional fuel costs in March.

 

While many airlines, including easyJet, have hedging in place for most or part of their fuel needs, the industry at large is monitoring developments closely amid oil price spikes and fears of fuel shortages due to the blockade of oil supplies through the Strait of Hormuz.

 

Airlines and airports in Europe are calling on authorities there to take action to protect their interests, including by better monitoring available jet fuel supplies and through collective purchasing.

 

In its April 16 trading update, easyJet said it is 70% hedged for the second half at $706 per metric ton, including for the the summer period, but noted that fuel prices remain volatile for the unhedged portion. “In line with the wider industry, we remain in close contact with our fuel suppliers and airports around fuel supply,” the carrier said.

 

It noted that every $100 movement in fuel prices equates to an approximately £40 million cost in the second half.

 

The airline also pointed to a reduction in visibility over bookings.

 

“The conflict in the Middle East has introduced near-term uncertainty around fuel costs and customer demand,” easyJet said. “As expected, the booking curve has shortened in recent weeks, resulting in lower than normal forward visibility.”

 

EasyJet, whose financial year runs to end-September, said it recorded a load factor of 90%, up two percentage points year on year, in the first half.  EasyJet Holidays saw continued strong demand, with customer numbers increasing by 22% in the first half.

 

“EasyJet saw continued positive demand in the first half, driven by our great value flights and holidays, alongside a continued focus on our operations and customer experience,” CEO Kenton Jarvis said in the trading update. “Despite these positives, our [first-half] financial performance worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets. Following our busiest Easter holiday period ever, the operational ramp-up into peak summer continues as planned.”

 

The underlying first‑half result was broadly in line with expectations, with revenue and costs in line, apart from the additional fuel costs in March and around a £30 million net increase in legal provisions across a number of historic cases, the airline said.

 

It also pointed to investments in Italy at Milan Linate and Rome Fiumicino, after it picked up slots as part of conditions for Lufthansa’s stake in ITA Airways.

 

EasyJet said expectations for full‑year airline headline CASK excluding fuel remain broadly in line with previous estimates, but are subject to fuel price volatility.

 

The airline said bookings for the third quarter are 63% sold and for the fourth quarter 30%, in each case two points lower year on year.

 

For easyJet Holidays, 67% is currently sold for the second half and financial year 2026 customer growth is expected to increase at a “low double‑digit rate” year on year “in a competitive market.”

 

The airline is due to report first-half results May 21.