London, United Kingdom. easyJet warned it expects a bigger first-half loss and said bookings were lagging last year’s as a result of the Iran war. Some investors raised concerns the budget airline might need to revise its outlook for the financial year.
Bookings and outlook concerns
easyJet said the conflict in the Middle East had introduced near-term uncertainty around fuel costs and customer demand. The airline said the booking curve had shortened in recent weeks, resulting in lower than normal forward visibility.
Shares in easyJet fell by as much as 9 per cent, while competitors Ryanair and Wizz Air also slipped. Analysts and investors said they expected easyJet might need to further revise its forecast for the financial year, though they noted the strength of its holidays business and balance sheet.
“We expect forecast to come back for FY26,” said Dudley Shanley, head of aviation at Goodbody, citing slower bookings and yield as factors feeding into investor scepticism.
Industry impact and capacity expectations
Wizz Air said its annual net profit would take a 50 million euro hit, while Lufthansa said it was withdrawing 27 CityLine aircraft from service due to rising fuel costs.
With European airlines set to start reporting first-quarter results in the coming weeks, analysts said further capacity cuts were likely, with markets watching for indications of the war’s impact on profit margins and revenue.
Fuel prices and shifting travel patterns
The Iran war has pushed jet fuel prices higher, affecting airlines globally and prompting carriers to raise fares, curb growth plans and reconsider forecasts.
EasyJet CEO Kenton Jarvis said travellers were booking closer to travel dates and that there had been an initial shift toward more domestic and city destination travel. Jarvis said there had been some movement away from the eastern Mediterranean toward the western Mediterranean, adding that travel to Cyprus, Egypt and Turkey was slowly recovering.
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