easyJet summer bookings fall amid Iran war and higher fuel costs

easyJet reported that summer holiday bookings are running behind year-ago levels and that passengers are booking later, citing uncertainty from the conflict involving Iran. The carrier said the tightened booking curve has reduced forward visibility for the peak season.

In an April trading update the airline said third-quarter bookings were around 63% sold versus 65% a year earlier and disclosed roughly £25 million of incremental jet fuel costs in March, driven by spot purchases as prices spiked. easyJet also guided to a headline pre-tax loss of £540–560 million for the first half of the financial year, flagging near-term pressure on margins.

The immediate market impact has been visible in share price moves and fare dynamics. easyJet’s shares fell sharply after the update and markets are pricing in the combined effect of later bookings and higher fuel. The carrier says it has hedged a significant portion of summer fuel (around 70% reported), but hedges unwind later in the season and could transmit further cost pressure into ticket prices.

More broadly, disruptions to shipping and higher crude and jet fuel prices following the Iran-related hostilities have amplified input-cost risk for European airlines. That environment complicates capacity and pricing decisions for low-cost and leisure carriers, and makes summer revenue less predictable for airports, tour operators and ancillary service providers.

Analysts say the pattern reflects timing shifts rather than an outright collapse in demand: delayed bookings can still materialize late, producing sudden fare spikes if confidence returns, or leave carriers exposed if elevated fuel costs persist. The outlook depends on conflict developments and fuel price trajectories; if volatility continues, airlines may need to adjust schedules or push through higher fares as hedges roll off. For investors, visibility will likely remain limited until booking curves normalize or fuel markets stabilize.