easyJet warns that rising fuel costs will depress profits

Budget airline easyJet warned Wednesday that rising fuel costs will push profits below previous expectations, although demand for seats remains strong.

Guidance given on Feb. 7 was based on a forward price of US$840 (euro532) per tonne for jet fuel, but the current price is now over US$1,000 (euro635) per tonne, the company said. This will hit profits even though two-fifths of its fuel requirements has been hedged at US$750 (euro475) per tonne.

"First half results will be in line with our expectations, however it is pretty obvious that if the recent significant rise in the fuel price is maintained then our second half profits will …