Fuel costs could hit airline profits, warns easyJet
Easyjet has warned that unprecedented high fuel costs could hit its full year profits, and those of other airlines.
Releasing its February figures today, chief executive Andy Harrison said: “First half results will be in line with our expectations, however it is pretty obvious that if the recent significant rise in the fuel price is maintained then our second half profits will be lower than we had previously expected.
“Of course the price of fuel will hit all airlines and we remain convinced that the combination of our new fuel efficient aircraft fleet, together with the proven strength of the easyJet business model, will mean that we shall emerge as winners in a high oil price environment.â€
Easyjet’s February load factors were up 1.8 percentage points versus the prior year to 84.8% and trading for Easter continues on track.
The airline said around 27% of summer seats are sold, which is slightly ahead of last year.
But it said the price of jet fuel has risen to unprecedented levels and if it remains at current levels, easyJet, like all other airlines will incur a significant increase in fuel costs.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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