EasyJet profit drops 70% as fuel bills rise and bookings come later
EasyJet says quarterly profit fell sharply after higher fuel costs and later passenger bookings, adding pressure as the airline navigates a proposed £5.7bn takeover.
easyJet has reported a steep fall in profit after a jump in fuel costs and a shift toward later holiday bookings hit its latest quarter, adding fresh pressure on the low-cost carrier as it sits in the middle of a proposed £5.7bn takeover process. The airline said pre-tax profit for the three months from April to June came in at £85m, down from £286m in the same period a year earlier. That amounts to a decline of about 70%, and the company pointed to a £105m increase in fuel costs after conflict in the Middle East pushed energy prices higher. The figures highlight how quickly external shocks can affect airline earnings, even when demand for travel remains intact. For budget carriers in particular, fuel is one of the largest expenses and can move sharply with global events. easyJet’s update suggests it was caught by both higher operating costs and a change in customer behaviour, with passengers booking closer to departure than before. That timing matters. Airlines usually prefer earlier bookings because they can better plan schedules, manage pricing and gauge demand. Later bookings can make revenue less predictable and put pressure on load factors and ticket yields, especially during the busy summer travel period. The latest results also arrive at a sensitive moment for the airline’s ownership story. According to the feed details, easyJet has two US investment firms vying to buy it, and the carrier only recently agreed to a £5.7bn takeover. No further details were provided in the feed about the bidders, the timetable or whether the profit fall changes the terms of the process. For investors, the immediate question is whether the cost shock is temporary or the start of a longer squeeze on margins. Airlines can often pass some costs through to fares, but not always quickly enough to fully offset spikes in fuel or broader economic uncertainty. Lower-cost operators can be especially exposed when demand softens or customers become more price-sensitive. The quarter also underlines the uneven nature of the aviation recovery: strong passenger demand can coexist with thin profits if input costs rise faster than revenues. easyJet’s update does not, from the feed details provided, indicate whether it has changed its outlook for the rest of the year or how it expects fuel and booking trends to develop. What is clear is that the airline is facing a difficult combination of pressures: a volatile energy market, later consumer spending decisions and a takeover backdrop that could bring further uncertainty. For now, the profit drop gives a snapshot of how fragile airline margins can be when geopolitics and travel patterns move in the wrong direction at the same time.
Source: The Guardian Business - https://www.theguardian.com/business/2026/jul/23/easyjet-profits-plunge-fuel-costs-soar-iran-war
