EasyJet CEO Reassures Passengers as Fuel Costs Bite

EasyJet’s chief executive assured travelers on Thursday that EasyJet summer flights face no supply risk, BBC Business reported, even as surging jet fuel costs driven by the Iran war continue to squeeze airline margins.

CEO Dismisses Fuel Shortage Fears

EasyJet CEO Kenton Jarvis told the BBC’s Today programme that the carrier had encountered zero supply problems at any of its European or UK airports. He urged passengers to book without hesitation and confirmed EasyJet would add no fuel surcharges to ticket prices. Jarvis credited growing output from Norwegian, West African, and American producers for easing pressure. He also pointed to expanded jet fuel refining capacity outside the Gulf region as a stabilising factor.

How the Iran War Reshaped Fuel Markets

The conflict triggered an effective blockade of the Strait of Hormuz, a critical artery for Europe’s jet fuel supply. Prices nearly doubled from roughly $831 per tonne in late February to a peak of around $1,838 per tonne in early April. They have since retreated to approximately $1,300 per tonne. EasyJet hedged 72% of its fuel needs through to September at pre-war prices. That coverage drops to 53% for the winter period spanning 2026 to 2027. The airline disclosed that the Iran conflict added an estimated £25m to its fuel bill in March alone.

Background: A Sector Watching Late Demand Carefully

Rival carrier Ryanair said earlier this week that Europe remained reasonably well stocked with jet fuel. Travel group Tui separately reported a 10% decline in summer revenue from UK customers, citing caution over forward commitments. Package holiday firm Jet2 noted that bookings had migrated closer to departure dates since hostilities began. Advantage Travel Partnership observed that near-term demand stayed strong, suggesting appetite for travel had not collapsed but had simply shifted later.

Earnings Loss and the Road to Summer Profit

EasyJet posted a pre-tax loss of £552m for the six months ending March, a seasonal pattern common across the industry as airlines rely on peak summer revenue to offset winter deficits. Jarvis acknowledged that second-half performance faces headwinds from elevated fuel costs and cautious consumer behaviour. The airline trimmed summer seat capacity by 0.3% earlier this year as a precaution. Equity analyst Aarin Chiekrie at Hargreaves Lansdown described EasyJet as among the European carriers most exposed to fuel price swings, warning that profitability would face significant strain even if the Middle East situation resolved quickly.

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