EasyJet issues profit warning
The high price of fuel will hit EasyJet profits in the second half of this year despite rising passenger numbers.
Fuel costs for the period April to September will be £45 million more than forecast following the recent rise in the price of oil above $100 a barrel, said EasyJet chief executive Andy Harrison. Jet fuel has risen 19% in price since the carrier's last statement to the City in February.
Harrison said: "It is pretty obvious that if the recent significant rise in the fuel price is maintained second-half profits will be lower than previously expected."
However, he said: "The price of fuel will hit all airlines. We remain convinced we shall emerge winners in a high oil-price environment."
Shares in the airline fell almost 10% on the news, although EasyJet said its first-half results to the end of this month would be in line with expectations.