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EasyJet dismisses fuel supply concerns for summer
EasyJet's chief executive has assured travellers that the airline faces no jet fuel shortages this summer, despite ongoing tensions in the Middle East disrupting key supply routes.
No immediate fuel crisis, says CEO
Kenton Jarvis told the BBC that EasyJet had encountered no fuel supply issues at any of its airports across the UK, Europe, or beyond. He emphasized that the airline maintained close communication with fuel suppliers, airports, and governments, all of which had reported no forthcoming disruptions.
"We've seen absolutely no issues with fuel supply in any of our airports... I would absolutely say don't panic about it," Jarvis said on the BBC's Today programme.
Kenton Jarvis, EasyJet CEO
Jarvis confirmed that EasyJet had no plans to introduce fuel surcharges on fares, reiterating the airline's commitment to operating its full summer schedule as advertised.
Middle East conflict drives fuel price surge
The ongoing war in Iran has effectively blocked the Strait of Hormuz, a critical shipping lane for Europe's jet fuel supplies. This disruption has nearly doubled fuel prices in recent months. Jet fuel traded at $831 per tonne in Europe in late February but spiked to $1,838 per tonne by early April before settling at around $1,300.
Despite these challenges, Jarvis noted that fuel production had increased in Norway, West Africa, and the Americas, while refining capacity for jet fuel had also expanded outside the Gulf region.
Later bookings reflect consumer caution
While fuel supplies remain stable, EasyJet has observed a shift in booking patterns. Travellers are increasingly reserving flights closer to departure, with strong demand for same-month departures. Jarvis attributed this trend to heightened uncertainty, stating that consumers were adopting a "wait-and-see" approach for bookings further in advance.
"As you look further out, people are more cautious... but they are booking, and I expect that strong late-booking market to run through the summer."
Kenton Jarvis, EasyJet CEO
This trend mirrors reports from other travel firms. Jet2 noted that bookings had become "increasingly close to departure" since the conflict began, while Tui reported a 10% decline in UK summer holiday bookings. Advantage Travel Partnership echoed these observations, highlighting robust demand for imminent departures but caution among consumers about committing too far ahead.
Financial impact and hedging strategy
EasyJet's delayed booking trend coincides with a reported pre-tax loss of £552 million for the six months ending in March. Airlines typically rely on summer profits to offset winter losses, but the carrier warned that higher fuel costs and demand uncertainty would weigh on its second-half performance.
The airline has already reduced its summer seat capacity by 0.3% and revealed that the Iran conflict added £25 million to its fuel bill in March alone. To mitigate risks, EasyJet has hedged 72% of its fuel supply for the six months to September at pre-war prices. This coverage drops to 53% for the 2026-27 winter period.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, described EasyJet as "one of the more sensitive European airlines to fuel price fluctuations."
"The recent spike in fuel prices looks set to take a big toll on profitability. Even if the Middle East conflict is resolved in the near term, fuel prices are likely to remain elevated for some time."
Aarin Chiekrie, Hargreaves Lansdown
Industry-wide fuel supply outlook
Ryanair previously stated that Europe remained "relatively well supplied with jet fuel," despite the geopolitical tensions. Meanwhile, the UK government has softened plans to ban imports of diesel and jet fuel derived from Russian oil in third countries, citing concerns over supply stability and price inflation.
