EasyJet profits plunge 70% as fuel costs soar amid Iran war
Summary
EasyJet’s profits fell by 70% in the last quarter due to higher fuel costs and passengers booking later than usual, following the conflict in Iran. The airline is also involved in a takeover battle between two US investment firms, but a possible EU review of ownership rules could affect the deal.Key Facts
- EasyJet’s pre-tax profit dropped from £286 million to £85 million between April and June.
- Fuel costs rose by £105 million because of the war in Iran, which increased energy prices.
- Two US firms, Castlelake and Apollo Global Management, are competing to buy EasyJet.
- EasyJet’s board prefers a £5.7 billion bid from Apollo over Castlelake’s £5.5 billion offer.
- The EU may review airline ownership rules to keep control of airlines within Europe.
- Passenger bookings are improving but mostly happen shortly before travel.
- Rival airline Ryanair also saw profits fall by 34% due to fuel price rises.
- Despite the profit drop, EasyJet’s shares rose by over 5% in early trading after a recent fall.
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