LONDON, April 18 — EasyJet said today it expected first-half losses to be cut by more than £50 million (RM296 million) as strong holiday demand offset higher fuel prices and disruption from the Gaza war.
The no-frills carrier forecast pre-tax losses of between £340 and £360 million in its six months to the end of March, which would be an improvement on the equivalent period a year earlier.
EasyJet, which flies mainly in Europe, paused flights to and from Israel after the Gaza war started in October.
It resumed flights to and from Tel Aviv at the end of March but following Iran’s weekend attack on Israel, EasyJet on Tuesday said it would again pause services until October 27.
The airline yesterday said fallout from the Gaza war had cost it £40 million.
The total “relates to the lost contribution... from pausing flying to Israel and Jordan alongside the demand softness seen in Egypt following the onset of the conflict in the Middle East”, it added.
In a conference call with media, EasyJet chief executive Johan Lundgren said the airline has been able to use the spare capacity on other destinations.
“Demand continues to build well before the summer,” he added.
Investors cheered the update, with EasyJet’s share price climbing 3.5 per cent to 536.4 pence in London. — AFP
