EasyJet's 70% Profit Plunge: Iran War and New Market Risks

EasyJet reported a 70% drop in profits for its 2025-2026 fiscal year, down to £85 million from £286 million in the same period last year. The decline was driven by soaring fuel costs and delayed bookings due to the Iran conflict.

■Fuel costs increased by £105 million.

■Late bookings rose by 15%.

■Average ticket prices fell by 1%.

■Unhedged fuel costs surged 100% for 20% of the fleet.

■Apollo Global Management offered a £5.7 billion bid.

■EU may introduce new rules requiring 51% local ownership.

■Shares rose 5% but fell 11% after EU regulatory concerns.

■Rival Ryanair saw a 34% profit drop, but EasyJet's 70% decline was more severe.

■CEO Kenton Jarvis expects bookings to rise 20% in September.

Markets are now assessing EasyJet's strategic positioning amid rising fuel costs, with the Iran War's impact on energy prices creating a new risk for the broader European aviation sector.