EasyJet today issued a warning that the "significantly" higher cost of fuel will cut its profits, a statement which caused airline shares to drop in Thursday morning trading.
If oil prices stay at their current levels, EasyJet confirm that an additional £85 million will be added to its bill in the six months from 1st April to 30th September.
An easyJet statement confirmed: “It is unlikely that such a large and immediate fuel increase could be mitigated in the short term by revenue improvements and cost actions, therefore pre-tax profits for the full year would be below previous guidance.”
The low cost airline said that forward prices for jet fuel this summer have risen from $840 a tonne to $1,000 a tonne since the beginning of last month.
EasyJet chief executive Andy Harrison said:"It is pretty obvious that if the recent significant rise in the fuel price is maintained, then our second half profits will be lower than we had previously expected,"
"Of course the price of fuel will hit all airlines and we remain convinced... that we shall emerge as winners in a high-oil price environment", Harrison confirmed.
