EasyJet profits plunge 70% as Iran conflict drives £105m fuel cost surge

The budget carrier's quarterly results highlight the severe margin pressure on European airlines from geopolitical risk, complicating the integration of its £5.7bn Apollo Middle East merger.

By Handelsavisen Newsroom · Automated 2026-07-23 07:24 UTC · 1 min read

EasyJet reported a 70% collapse in pre-tax profits for the quarter ended June 30, with earnings falling to £85 million from £286 million a year earlier.

The sharp deterioration was driven by a £105 million hit from soaring fuel costs linked to the ongoing conflict in Iran, alongside softer passenger bookings.

7 billion takeover of Apollo Middle East, casting a shadow over the strategic rationale for the expansion amid rising operational risks.

The results arrive just weeks after the carrier agreed to a £5.7 billion takeover of Apollo Middle East, casting a shadow over the strategic rationale for the expansion amid rising operational risks.

The profit slump underscores the vulnerability of low-cost carriers to geopolitical shocks that disrupt energy markets.

While EasyJet has historically benefited from scale and route density, the sudden spike in fuel expenses has eroded margins significantly.

The carrier attributed the decline to both the direct cost of fuel and a broader softening in demand, as travelers remain cautious amid regional instability.