EasyJet shares drop 9% as it suffers £25m higher fuel bill from Middle East war

Dan Coatsworth, head of markets at AJ Bell, said: “EasyJet had already lost one quarter of its market value this year as investors fretted about higher costs and a summer of disruption if fuel is scarce.

“A lot of bad news was already priced in, meaning the latest trading update is only confirming what people expected and not catching the market off guard.

“Bookings are down for the third and fourth quarter versus last year, and 30 per cent of its second-half fuel requirements are exposed to higher oil prices.

“The airline is in good financial shape to withstand another period of disruption, and it is well-versed in dealing with setbacks given past experiences with air traffic control strikes and the stop-start pandemic backdrop.

“So much depends on what happens next with the Middle East crisis. A swift resolution could remove cost pressures and trigger a flurry of bookings.

“A prolonged crisis could see demand dwindle further and a succession of cancellations if fuel supplies run dry or are rationed in various parts of the world.”