EasyJet Says Fuel Supply Secure as Jet Fuel Prices Near Double

TL;DR: EasyJet faces no fuel‑supply disruptions this summer even though European jet fuel prices have risen to about $1,838 per tonne, because the airline has hedged 72% of its fuel at pre‑Iran‑war levels.

Context Jet fuel in Europe surged from $831 per tonne in late February to $1,838 per tonne in early April, a near‑doubling driven by the Iran‑Israel conflict and the resulting bottleneck in the Strait of Hormuz. The price spike raised concerns about airline schedules and ticket costs across the continent.

Key Facts - EasyJet CEO Kenton Jarvis told the BBC that the airline has encountered no fuel‑supply issues at any of its airports in the UK, Europe, or beyond. He emphasized close coordination with fuel suppliers, airports and governments, all of whom report no current shortages. - The carrier has locked in 72% of its fuel needs for the six months ending September at prices that prevailed before the Iran war, effectively shielding most of its summer operations from the price surge. - Despite the higher market price, EasyJet will not add fuel surcharges to its fares and plans to maintain its full summer schedule. - Production of jet fuel has risen in Norway, West Africa and the Americas, while refining capacity outside the Gulf region has expanded, helping to offset supply constraints. - Booking patterns show a shift toward shorter windows, with strong demand for flights departing within weeks, while longer‑term bookings remain cautious.

What It Means EasyJet’s extensive hedging strategy limits exposure to volatile fuel costs, allowing the airline to keep ticket prices stable and avoid operational cuts. The lack of supply disruptions suggests that, despite geopolitical pressures, the European jet‑fuel market remains functional. However, the airline’s pre‑tax loss of £552 million for the first half of the year highlights the broader financial strain on carriers from elevated fuel prices.

Looking ahead, analysts will watch whether the price of jet fuel stabilises as the Middle‑East conflict evolves and whether EasyJet’s hedging coverage can be maintained into the winter period, when 53% of fuel is hedged at pre‑war rates.