Easyjet sees strong first half despite Middle East instability

"We see positive booking momentum for summer 2024 with travel remaining a priority for consumers," said chief executive Johan Lundgren in a statement.

Easyjet said it expected smaller losses in the first half of the year and saw strong summer bookings despite a write-down of about £40m due to the conflict in the Middle East.

The London-listed airline reported a narrower first-quarter headline loss before tax of £126m, compared with a loss of £133m a year ago.

European airlines benefited from strong demand in 2023 as travellers continued to fly in a post-pandemic rebound, but fears over high jet fuel prices, geopolitical instability in the Middle East and macroeconomic uncertainty caused some concern.

"We see positive booking momentum for summer 2024 with travel remaining a priority for consumers," said chief executive Johan Lundgren in a statement.

The company added that it was able to mitigate the impact of the war thanks to capacity growth in areas where demand was mounting and that bookings had recovered since late November.

However, the airline said it will maintain its pause on flights to Israel and Jordan and has seen a slowdown in demand to Egypt as a result of the war.

Many airlines rearranged their flight paths, after Hamas reignited tensions on October 7, to ensure capacity and flight bookings.

Sixteen aircraft deliveries were also set to go ahead as planned, the company said, adding that it would use CFM as its engine supplier for 314 engines to power its recent order of 157 Airbus aircraft.

- Reuters