The boss of easyJet has issued an update on possible flight cancellations and pricier air fares for passengers as jet fuel prices soar.

The ongoing conflict in the Middle East cost the budget airline around £25 million in higher jet fuel prices last month as the war in Iran caused oil prices to spike. EasyJet said the war has introduced “near-term uncertainty around fuel costs and customer demand”, with bookings down two percentage points for the three months to the end of June and September compared to a year ago. The airline said it expects to report a headline loss of between £540 million and £560 million for the six months to the end of March.

Last month, CEO Kenton Jarvis urged holidaymakers to book flights “as early as possible” as ticket prices could jump if fuel costs remain at this current level.

Asked this week about the impact on air fares, Mr Jarvis said “pricing remains competitive” and demand for flights in the three months to the end of September will be dependent on the late summer market and “what happens to the conflict in the next week or two”.

As for fears that airlines may be forced to cancel flights due to jet fuel shortages, Mr Jarvis said all the airports it serves are “operating as normal”.

He said: “We only ever in this industry have three to four weeks visibility (of jet fuel supplies), and that is the same as it was pre-crisis.

“We have visibility to the middle of May, and we have no concerns. What we’re seeing is airports and fuel suppliers working well to bring jet fuel to the airports.”

The budget airline previously said it buys its fuel in advance so it is “well-hedged” for the coming months, but if prices remain elevated, by the end of the summer, this could lead to more expensive air fares for passengers.

Mr Jarvis said airlines like easyJet worked on “thin” margins of £6 to £7 per seat, so there was a need to offset increased costs with efficiencies, but that would be difficult.

Jet fuel accounts for about a third of airline costs, and Air France-KLM and SAS have already said they will have to hike ticket prices, while Finnair has warned that jet fuel supplies may run out due to the closure of the Strait of Hormuz.

In January, easyJet said it ​had hedged 84% of its fuel ​needs for the first ⁠half of 2026, 62% for the second and 43% for the first half of 2027, at an average cost of $715, $688 and $671 per metric ton, respectively.

For now, ​Mr Jarvis said he saw no issues with supply, and easyJet was dealing ​with fuel price ⁠volatility through “business as usual management through cost.”

The Iran war has already impacted holiday bookings, with easyJet noting an increased demand for destinations away from the conflict, with the eastern Mediterranean becoming less popular and demand increasing for destinations in the western Mediterranean.

Spain, the Canaries, Portugal, Malta and Greece are among the areas proving popular among holidaymakers, while there has been a “softening demand” for both Middle Eastern destinations, Turkey and Cyprus.

EasyJet said last month it hadn’t yet made any capacity changes, but it could reduce flight frequency on routes served by multiple daily flights. With the situation still “very unpredictable”, easyJet said it’s still unclear how the ongoing war in Iran could affect demand in the longer term.

Dan Coatsworth, head of markets at AJ Bell, said while the Middle East war is putting pressure on easyJet, it is “in good financial shape to withstand another period of disruption”.

He added: “So much depends on what happens next with the Middle East crisis. A swift resolution could remove cost pressures and trigger a flurry of bookings.

“A prolonged crisis could see demand dwindle further and a succession of cancellations if fuel supplies run dry or are rationed in various parts of the world.”