Why budget airline EasyJet has suffered a huge drop in profits

• EasyJet reported a 70 per cent slump in pre-tax profits, falling to £85 million in the three months to 30 June, down from £286 million a year earlier.
• The budget airline attributed the profit decline primarily to soaring fuel costs, which rose by £105 million due to the Iran war, and lower booking numbers.
• This financial update follows EasyJet's recent agreement in principle for a £5.7 billion takeover by US private equity firm Apollo.
• Passenger numbers decreased by 0.4 per cent to 25.8 million in the quarter, and the load factor also saw a reduction.
• EasyJet noted a trend of passengers booking closer to departure, with strong late bookings partially offsetting weaker overall demand.

IN FULL

EasyJet profits plunge 70 percent as soaring fuel prices hit budget airline