easyJet’s Summer Gets Pricier as Iran War Hits Bookings

A British low-cost airline, easyJet, said that the Iran war is pushing up fuel costs and making summer demand harder to predict.

The airline said travelers are booking later than usual, which reduces visibility ahead of the busiest season of the year. It now expects a wider first-half loss, showing that the impact is already reaching both airline costs and booking patterns.

Higher fuel costs are the first clear hit

easyJet said it expects a headline pre-tax loss of £540 million to £560 million ($733.3 million to $760.5 million) for the first half. A big reason is fuel. The airline said March alone brought about £25 million ($34.0 million) in extra fuel costs because part of its fuel needs had to be bought at much higher market prices.

Travelers are still flying, but they are waiting longer to book

The airline did not say demand had collapsed. Customers are still traveling, and easyJet’s holidays business continues to grow. But booking behavior has changed. More people are waiting until closer to departure before making a reservation.

easyJet’s chief executive also said there has been a small shift away from parts of the eastern Mediterranean and more interest in domestic trips, city breaks, and the western Mediterranean. Demand for Cyprus, Egypt, and Turkey, however, was starting to recover.

The crisis is starting to move beyond higher airline costs and toward possible flight disruptions if supply pressure continues.

Photo by Elio Santos on Unsplash