Overview
- EasyJet reported on Thursday that pre-tax profit for the quarter to June fell 70% to £85 million after fuel costs rose by about £105 million year-on-year.
- The airline links the higher fuel bill to the Middle East/Iran conflict and says roughly 79% of fuel needs are fixed by contracts while the unhedged portion remains exposed to volatile prices.
- Passenger numbers were broadly flat at 25.8 million with a weaker load factor as customers shifted toward later, last-minute bookings that have needed lower fares to stimulate demand.
- EasyJet has agreed in principle to Apollo’s £7.15-a-share approach but no firm offer has been lodged and rival bidder Castlelake also remains in play with firm-offer deadlines of August 7 for Apollo and August 3 for Castlelake.
- Brussels has signalled a review of EU airline ownership rules that could complicate or delay any sale, and the airline has moved to limit disruption by using hedges, trimming fares to boost late bookings and appointing Sophie Dekkers as incoming COO.