EASYJET said the renewed conflict in the Middle East wiped £40m off its bottom line in the last quarter after flights were paused and bookings slowed in the wider industry.

In a trading update on the London Stock Exchange, Easyjet said it expected fuel costs to come in around seven per cent higher in the first quarter of 2024, although it is well hedged. Winter losses for the first half are broadly expected to improve year-on-year despite the impact of the Israel-Gaza conflict.

Total pre-tax losses for the budget airline came in at £126m for three months to December, narrowing yearon-year from £133m. Improvements to the bottom line gave investors confidence in early trading, with shares rising 5 per cent.

Passenger numbers increased by 14 per cent to 19.8m as demand held up over winter after this summer's travel bonanza. The airline flew 23m seats in the quarter, up from 20.2m the prior year, with a slightly lower load factor of 85 per cent.

On the Middle East, CEO Johan Lundgren said that demand from Egypt had returned since October: "It was definitely impacted hard in the first weeks but it has bounced back very quickly."

(c) 2024 City A.M., source Newspaper