EasyJet Q3 profits slide as Iran war raises fuel costs, dents consumer confidence

EasyJet reported a third-quarter profit slide driven by high fuel costs and softer consumer demand after the Middle East conflict began. In the quarter to the end of June, headline pre-tax profit fell to £85m from £286m a year earlier. CEO Kenton Jarvis said the airline continued to manage the impact on fuel prices and booking trends, while noting that pricing remained attractive and supported strong late booking demand for flights and holidays. He also said rising consumer confidence is closing the peak-summer load factor gap and extending the booking curve. The results followed a stock drop the day before, after Reuters reported the European Union was preparing a review of airline ownership rules to prevent foreign investors from gaining effective control. EasyJet is also in a takeover contest, having agreed earlier in the month to be acquired by Apollo in a £5.7bn deal that beat Castlelake’s offer.