easyJet reported third-quarter headline pre-tax profit of £85m, down from £286m a year earlier, due to higher fuel costs and weaker consumer demand following the Middle East conflict.

However, easyJet said attractive pricing has helped support strong late booking demand for flights and holidays. The Luton-based airline reported group revenue of approximately £2.98bn for the quarter ending 30 June, up about 2% year-on-year from roughly £2.92bn in the comparable period last year.

Fuel costs increased by £105m year on year, while non-fuel costs remained in line with guidance as the ongoing turmoil in the Middle East continues to take its toll.

Package holidays business easyJet Holidays continued to provide resilience, with pre-tax profit down slightly to £84m from £86m while customer numbers rose 8%, and the airline said it expects holiday customers to grow by low double digits over the full year.

It also reaffirmed plans to grow full-year capacity by around 6% and said booking trends for the peak summer season and early 2027 had improved.

Passenger numbers were broadly flat at 25.8 million during the quarter and the load factor slipped to 88.9% from 90.2% a year earlier.

Kenton Jarvis, easyJet’s CEO, said: “We have continued to manage the impact of the Middle East conflict, and its effect on fuel prices and booking trends, during the quarter. 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."

Investors looked through the profit drop, sending the shares up about 5% to around £6.90 in trading higher as they welcomed improving summer booking trends and ongoing takeover interest between Castlelake and Apollo.

AJ Bell investment director Russ Mould, said: “Having fallen sharply yesterday on fears tightened EU ownership rules might nix US bids for the airline, EasyJet recovered some ground despite reporting falling profit today."

Mould said the big question now is whether one of its US suitors "can get a deal across the line or if red tape gets in the way and EasyJet remains an independent entity.”

Victoria Scholar, Head of Investment, interactive investor, added: "Shares are still trading sharply higher this year, reflecting the takeover premium, suggesting investors still believe a deal will ultimately go through.”

---