"EasyJet's chief executive, Kenton Jarvis, stated that demand remains strong in the short term, but customers are leaving it later to book due to economic uncertainty. He emphasized that fuel supplies are normal and any speculation about flight cancellations is unfounded."
"Jarvis noted that each $100 movement in the spot price of jet fuel per metric tonne adds 40 million in costs for unhedged supply, with current prices about $800 higher than before the conflict began."
"Despite the challenges, Jarvis mentioned that after an initial drop in demand for destinations like Egypt, Turkey, and Cyprus, there has been a slight recovery, indicating resilience in certain markets."
EasyJet anticipates a pre-tax loss of 540-560 million for the first half of 2024-25, up from 394 million. Fuel costs have risen by 25 million in the last month due to the Iran war, with each $100 increase in jet fuel adding 40 million in costs for unhedged supply. Despite strong short-term demand, customers are booking later due to economic uncertainty. EasyJet has hedged 70% of its fuel needs and maintains normal fuel supplies, with operational plans for peak summer continuing as scheduled.
Read at www.theguardian.com
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