EasyJet has warned that the ongoing conflict in the Middle East is beginning to affect travel demand, with bookings falling and air fares expected to rise as fuel costs surge.
Chief executive Kenton Jarvis said the airline had already seen a slowdown in forward bookings for the summer, particularly to destinations closer to the conflict.
“We have seen a drop in bookings,” he said.
Flights to Turkey, Cyprus and Egypt have been hardest hit, while demand for more traditional holiday destinations such as Spain, Greece and Portugal has remained strong.
Jarvis suggested the disruption could be temporary, based on previous geopolitical crises.
“If it’s the same as the Ukraine crisis or after the Hamas attacks on Israel, that tends to lasts about six weeks, until, terrible though it is, the news is off the front pages,” he said.
Despite hedging much of its fuel costs into next year, EasyJet is still facing pressure from rising oil prices. Jarvis said it was “unavoidable” that some of these costs would eventually be passed on to customers.
The airline is currently paying around $700 (£520) per tonne for jet fuel due to its hedging strategy, but spot market prices have surged to around $1,850 — raising concerns across the aviation sector.
“Luckily most European airlines are extremely well hedged,” Jarvis said.
“But the reality is that prices will start feeding in to the consumer over the back end of summer.”
The warning suggests passengers could face higher air fares towards the end of the peak holiday season, particularly if the conflict continues to push up energy prices.
The update comes as EasyJet confirmed it has reopened its base at Newcastle Airport, which was closed in 2020 during the Covid pandemic. The move will see three aircraft stationed at the site and is expected to create around 140 jobs directly, alongside more than 1,000 roles across the wider region.
Newcastle’s mayor, Kim McGuinness, welcomed the investment, saying: “Tourism is a key part of my growth plans for the region… and the strength in our region’s tourism that it represents.”
The airline plans to operate routes mainly to southern Europe and Mediterranean destinations, though services to Turkey and Egypt will continue despite weaker demand.
Jarvis said EasyJet could adjust its capacity if the conflict persists.
The airline also reiterated its approach to domestic routes, with chief commercial officer Sophie Dekkers stating: “If the train journey is two-and-a-half hours or less, we don’t operate a flight.”
As geopolitical tensions continue to impact travel patterns and fuel costs, airlines are warning that the effects are likely to be felt by passengers through higher prices and shifting holiday demand in the months ahead.
