EasyJet summer holiday bookings down on last year amid Iran war uncertainty | easyJet
Airline EasyJet said summer holiday bookings were behind last year as conflict in the Middle East weighed on consumer confidence and passengers were waiting later to book trips.
The carrier said it had to unexpectedly spend an extra £25 million on jet fuel in March following the start of the US-Israeli war against Iran.
However, easyJet said it had not experienced any disruption to fuel supplies, adding that there was normal visibility of supplies for a period of four weeks. He said he did not expect to cancel any further flights this summer, despite Ryanair’s Michael O’Leary warning in April that Britain would be the country most vulnerable to potential jet fuel shortages in Europe if the Strait of Hormuz remained closed.
EasyJet said customers should “book with confidence” amid signs that fuel shortages and associated flight cancellations were discouraging travellers, echoing comments from rivals such as Ryanair.
Kenton Jarvis, easyJet’s general manager, said airlines can source jet fuel from many different countries: “Fuel supply is diversifying, we are seeing more production in America and Norway.”
The airline said customers were still reluctant to book too far in advance, with many waiting until the month of departure to travel.
“We continue to see positive late bookings since the conflict began, but overall bookings for the summer period are behind what they were at this point last year,” he said.
The company has hedged 72% of its fuel needs for the next six months, covering the busy summer period until the end of September. However, it temporarily suspended short-term hedging due to “increasing fuel prices in the near term.”
Meanwhile, easyJet reported a pre-tax loss of £552 million in the six months to March 31, compared to a loss of £394 million in the same period the previous year. The carrier generally makes its money in the second half of the year, which includes the busiest summer period.
EasyJet said it was increasing its minimum fare and reviewing all its optional costs in response to rising fuel costs.
Jarvis said the airline was able to cope with the current situation. “Although conflicts in the Middle East create near-term uncertainty, easyJet is well placed to manage the current environment, supported by one of the strongest investable balance sheets in European aviation,” he said.
“EasyJet is not seeing any disruption to fuel supply, we continue to operate as normal and our customers should book with confidence.”
The airline said it reviewed its summer flight schedule in March after the conflict broke out, resulting in a net 0.3% reduction in seats during the period. But now he plans to run his entire summer program as planned.
The carrier said it continues to see strong demand for holiday packages, with customer numbers up 22% in the six months to March compared to the previous year.
Jarvis called on European airports to use the “flexibility” given to them by the European Commission to help passengers avoid long border queues during peak travel periods, such as bank holiday weekends and school half-term holidays in some parts of the UK.
Some travelers have faced long delays at border controls due to the EU entry-exit system that came into force at the beginning of April.
“This is truly inexcusable,” Jarvis said. “I encourage border forces and member states in Europe to use the flexibility the EC offers [European Commission] gave it to them. They don’t need to leave people in long queues. “They can stop using the gates, or they can stop parallel running using the normal passport stamping procedure.”
He added that passengers should also arrive at the airport on time.
