EasyJet profits fall as Apollo bid resurfaces

EasyJet reported a 70% drop in quarterly pre-tax profits to £85m for the three months to June, due to higher fuel costs and weaker demand linked to the Iran war. Fuel costs rose by £105m as energy prices surged following the Middle East conflict. Bookings began to recover late, with passengers booking closer to departure, but the full-year outlook remains uncertain amid volatile fuel prices and remaining bookings. The results come as the airline pursues a takeover, with Apollo offering £7.15 per share and valuing the group at about £5.7bn, challenging Castlelake’s competing bid. The market reaction included share declines and heightened regulatory scrutiny over ownership rules that could affect the deal. EasyJet also noted some summer strength with bookings for the peak period improving, even as overall demand remains pressured.