EasyJet reported a first-half after-tax loss of £377 million, a 27% increase from the prior year, mainly driven by higher fuel costs and uncertainty caused by the Middle East conflict [1, 2]. Revenue rose 12% to about £3.95 billion, supported by a 6% increase in passengers carried during the period [1, 2].
The conflict in the Middle East, which erupted in late February 2026, added approximately £25 million in fuel costs for EasyJet and disrupted travel patterns across Europe and beyond [1, 2, 3]. EasyJet’s chief executive Kenton Jarvis said, "Despite conflict in the Middle East creating near‑term uncertainty, EasyJet is well placed to manage the current environment" [1].
Europe is experiencing a shift in tourism demand as travelers avoid Middle Eastern destinations, instead favoring closer European hotspots such as Italy and Spain, which have seen increased visitor spending [3]. Tourist visits to Middle Eastern countries and Southeast Asia from Europe have sharply dropped, with April 2026 data showing Germans’ visits to Thailand down 29% and Italians’ down 44% [3]. IE business school professor Rafael Pampillon Olmedo noted that the war is "disrupting international tourist flows and shifting a portion of the demand to destinations seen as being safer" [3].
Despite softer demand and customers booking later, analyst Aarin Chiekrie at Hargreaves Lansdown said, "It doesn’t appear that holidaymakers are abandoning their vacation plans completely. While that’s not ideal, it’s better than complete demand destruction" [3].
EasyJet also faced a £32 million increase in legal provisions related to historic cases during the period, adding to its costs [1]. The company reported lower summer flight bookings compared to last year, reflecting near-term booking caution [1, 2].
EasyJet expects the Middle East conflict to continue impacting its second half with higher fuel costs and uncertain customer demand [1, 2].
