EasyJet expects wider first half loss of 560 million

The budget airline expects a pre-tax loss of up to 560 million pounds for the first half. Higher fuel prices and legal costs contributed to the wider deficit.

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EASYJET PLC, the budget airline based in the United Kingdom, has projected a headline pre-tax loss of between 540 million and 560 million pounds for the first half of the year. This figure marks a significant widening from the 394 million pound loss reported in the same period a year ago, as the company deals with multiple macroeconomic headwinds.

A pedestrian passes the EasyJet corporate branding at Josep Tarradellas Barcelona-El Prat Airport during a period of industrial action by cabin crew in Spain, July 2022. REUTERS/Albert Gea

The airline identified surging fuel costs as a primary factor behind the increased losses. Prices for Brent Crude Oil have remained elevated and volatile due to the ongoing conflict in the Middle East, placing a heavy burden on fuel-intensive industries. Additionally, the company noted that higher legal provisions contributed to the negative financial trajectory during the period.

Based on recent valuations for GBP/USD, the forecasted loss is equivalent to a range of $733.3 million to $760.5 million. The carrier's performance reflects the broader challenges facing the European aviation sector, including geopolitical instability and rising operational expenses.

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