EasyJet Profits Drop 70% on Fuel Costs and Geopolitical Tensions

EarningsCommodity

โดย Insider Monkey·Read original

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EasyJet reported a 70% drop in pre-tax profit to £85 million for the April-to-June quarter, down from £286 million a year earlier, as higher fuel costs and weaker bookings following the Iran-U.S. conflict weighed on results. Fuel costs rose by £105 million, driven by higher prices on the unhedged portion of consumption, with fuel prices peaking at around $1,800 per metric tonne in April. Despite the profit decline, shares rose over 5% in early trading Thursday, partly recovering from an 11% fall the previous day after reports of a potential EU review of a takeover bid. The company has attracted takeover interest, with its board recommending a £5.7 billion bid from Apollo Global Management over a £5.5 billion offer from Castlelake. Management noted improving booking trends and expects August bookings to exceed last year's levels, though the outlook remains dependent on volatile fuel prices and summer travel demand.