In brief
easyJet's pre-tax profit fell to £85 million in Q3 2026 from £286 million a year earlier, a 70% decline.
Fuel costs rose by £105 million, or 13%, driven by the Middle East conflict that began in March 2026.
Apollo's £5.7 billion bid tops Castlelake's £5.5 billion offer; deadlines are 7 August and 3 August respectively.
Passenger numbers dipped 0.4% to between 25 and 25.8 million, with a load factor of 88.9%, as late bookings partially offset war-related weakness.
Shares fell up to 14% on reports the EU may tighten foreign ownership rules, before recovering 2.5% on Thursday.
- 23 JulQ3 results announced: pre-tax profit £85m, down 70%
- 3 AugCastlelake deadline to formalise offer
- 7 AugApollo deadline to formalise offer
Profit collapse
easyJet reported pre-tax profit of £85 million for the three months to June, a 70% drop from £286 million in the same period last year. Revenue edged up 2% to £2,983 million, but the bottom line was hit by a £105 million increase in fuel costs. EBITDA fell 38% to £304 million. The airline carried 25 million passengers (or 25.8 million, depending on source), down 0.4% year on year, while the load factor slipped to 88.9% from 90.2%.
Fuel and conflict
The rise in fuel costs is directly linked to the Middle East conflict that began in March. easyJet said its kerosene bill rose by 13% to roughly £100 million, with the war disrupting energy markets and pushing up jet fuel prices. The conflict has now lasted five months, and the airline warned that the full-year outcome "remains dependent on the important remaining bookings, as well as fuel prices, which continue to be volatile".
“We have continued to manage the impact of the Middle East conflict, and its effect on fuel prices and booking trends, during the quarter.”
Booking trends and summer outlook
Consumer confidence was shaken by the war, leading to a shift toward last-minute bookings. While late demand was strong, it did not fully compensate for the earlier weakness. However, easyJet noted that the load factor gap for peak summer is narrowing and the booking curve is extending. The carrier has sold 68% of its capacity for the July–September quarter. CEO Kenton Jarvis said pricing has been attractive, driving strong late demand for flights and holidays.
“As consumer confidence increases, we are seeing the load factor gap close for peak summer and an extension of the booking curve as customers continue to prioritise travel and take advantage of our great fares.”
Takeover battle
easyJet is at the centre of a bidding war between two US private equity firms. Apollo has offered £5.7 billion, or £7.15 per share, topping a £5.5 billion proposal from Castlelake. The board has recommended the Apollo bid. Under UK takeover rules, Castlelake has until 3 August to formalise its offer, while Apollo's deadline is 7 August.
Regulatory cloud
The takeover faces potential hurdles after reports that the EU may tighten airline ownership rules to prevent foreign investors from gaining control. easyJet shares fell as much as 14% on Wednesday on the news, before recovering 2.5% on Thursday. CEO Jarvis said he had not heard anything from the EU on the matter.
Peer comparison
Rival Ryanair also felt the impact of the Middle East conflict, reporting a 34% drop in after-tax profit to €538 million for the same quarter, missing analyst expectations of €579 million. easyJet Holidays, the group's package holiday arm, held steady with a pre-tax profit of £84 million, compared with £86 million a year earlier.
- Q3 2025
- 286 £m
- Q3 2026
- 85 £m
Data from the article text