EasyJet Shares Climb Despite Steep Profit Drop as Bookings Recover from Middle East Conflict Hit

Shares in easyJet (LON: EZJ) have risen more than 5% on Thursday, hitting around 615p, after the budget carrier reassured investors that booking trends are recovering following a difficult third quarter dominated by the Middle East conflict.

The airline reported a headline pre-tax profit of £85 million for the quarter ended 30 June 2026, sharply down from £286 million a year earlier, as elevated fuel prices and a hit to consumer confidence weighed on results. Fuel costs rose 13% year-on-year, adding £105 million in costs, with prices peaking near $1,800 per metric tonne in April.

Despite the profit slump, investors focused on signs of improving momentum. Revenue per available seat kilometre (RASK) fell 3% year-on-year, but that marked a one-percentage-point improvement versus the position booked in May. Load factor stood at 88.9%, down 1.3 percentage points, while passenger numbers were broadly flat at 25.8 million.

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EasyJet holidays continued to shine, delivering £84 million in profit before tax, with customer numbers up 8% and underlying profit growth of 7% excluding currency effects.

CEO Kenton Jarvis said the company was “seeing the load factor gap close for peak summer” as consumer confidence returns, with the booking curve extending as customers prioritise travel.

Looking ahead, easyJet said Q4 bookings were 68% sold, two percentage points below last year but improving, with yields flat. Early bookings for Q1 FY27 have shown encouraging mid-single-digit yield growth.

The group also announced management changes, with COO David Morgan retiring to return to flying, succeeded by Sophie Dekkers, while Daniel Skjeldam joins as Chief Commercial Officer in September.

The update and share price move comes a day after EasyJet stock slumped following a Reuters report that revealed the European Union is preparing to tighten airline ownership rules in a move that could derail the ongoing bidding war for the carrier.