London, May 21, 2026, 09:12 BST
- easyJet shares fell 0.6% to 344.9 pence in early London trade after the airline reported a £552 million first-half loss.
- The company warned that fuel costs and softer summer booking patterns left its full-year outlook uncertain.
- Investors are watching whether later bookings can offset higher ticket prices and a sharp jump in jet fuel.
EasyJet shares slipped in early London trading on Thursday after the budget airline reported a first-half loss and warned that the Iran war had pushed up fuel costs and weakened summer booking visibility.
The stock was down 0.6% at 344.9 pence at 09:12 BST, after moving between 337p and 351.1p, according to delayed market data from Davy. The move matters because easyJet is heading into its peak summer period, when European airlines usually make the bulk of their profit.
EasyJet reported a first-half loss of £552 million, broadly in line with the £540 million to £560 million range it had flagged earlier, but said the full-year outlook remained uncertain as higher fuel costs and weaker advance bookings clouded the summer.
Jet fuel prices have jumped more than 80% since late February as the Iran conflict disrupted aviation and constrained flows through the Strait of Hormuz, forcing airlines to weigh higher fares, capacity cuts or lower margins.
Chief Executive Kenton Jarvis said easyJet aimed to “bounce back” through disciplined growth, faster fleet upgrades and the expansion of easyJet Holidays, the package-holiday arm that has become a key profit engine for the group. Reuters
The company is 72% hedged at $726 per tonne for fuel, meaning it has contracts that lock in prices for part of its needs. That still leaves it exposed to spot prices around $1,350 per tonne, with each $100 move adding about £35 million to fuel costs, Reuters reported.
“This is where things look dicey,” Duncan Ferris, investment writer at Freetrade, wrote in a note cited by Reuters, adding that the hedge offered protection but “not immunity” and left easyJet “a little exposed.” Reuters
Bookings for the second half were 58% sold, reflecting a shorter booking curve, or customers leaving purchases closer to departure. EasyJet has started shifting capacity toward domestic and city routes as demand weakens for longer-haul eastern Mediterranean destinations.
The pressure is not confined to easyJet. Ryanair said earlier this week it was cutting some summer fares to keep volumes moving, even after posting record annual profit, while Chief Executive Michael O’Leary told analysts there was “a little bit of customer nervousness out there.” Reuters
But the risk case is still clear. If fuel stays high and customers keep delaying bookings, easyJet may have less room to lift fares without hurting demand, especially on leisure routes where travellers can switch destinations or stay closer to home.
EasyJet said it also plans a loyalty programme in 2027 to help retain customers. For now, the share price is being pulled between a still-busy summer travel market and the blunt cost shock from fuel.
