EasyJet PLC (LSE:EZJ) posted a wider first-half loss as the Iran war led to higher fuel costs and reduced visibility into summer bookings, offsetting improvements in passenger numbers and its holidays business.
The budget airline said forward bookings had slowed since the escalation in Middle East tensions, with customers booking closer to departure dates than normal.
A headline pre-tax loss of £552 million was reported for the six months to 31 March, compared with a £394 million loss a year earlier, after fuel costs were added to investment costs linked to network expansion and digital upgrades.
Passenger numbers increased 6% year-on-year while load factor improved by two percentage points to 90%. Revenue per seat rose 1%, helped by foreign exchange movements, route maturity and the earlier timing of Easter.
The holidays business delivered EBIT up 50% to £48 million, as customer numbers rose 22%.
Chief executive Kenton Jarvis said the airline was “well placed to manage the current environment” despite near-term uncertainty linked to the Middle East conflict, supported by "one of the strongest investment‑grade balance sheets in European aviation".
He added: “easyJet is not seeing any disruption to fuel supply, we continue to operate normally".
Third-quarter bookings were 79% sold, down one percentage point year-on-year, while fourth-quarter bookings were 40% sold, down three percentage points.
The airline ended the half with £4.7 billion of liquidity and net cash of £434 million. It reiterated its medium-term target of generating more than £1 billion of annual pre-tax profit as market conditions normalise.