EasyJet has reported a 70% fall in quarterly profits, blaming soaring fuel costs and later customer bookings linked to the conflict in Iran, just weeks after agreeing a £5.7bn takeover deal. Pre-tax profit for April to June came in at £85m, down from £286m a year earlier, as fuel costs rose by £105m following the outbreak of Middle East hostilities in late February, which sent energy prices sharply higher. The results add pressure to an already turbulent period for the budget carrier, whose ownership future remains uncertain amid a bidding war and a possible EU intervention.

Two US investment firms, Castlelake and Apollo Global Management, are competing to buy easyJet, with the board now backing Apollo's higher £5.7bn offer over Castlelake's £5.5bn bid, though a potential EU review of airline ownership rules has cast doubt on the deal, since EU rules require 51% local ownership. Rival Ryanair also reported a 34% profit drop to €538m for the same period, hit by jet fuel prices doubling on its unhedged fuel supply. Despite the profit slide, easyJet shares rose more than 5% on Thursday, recovering part of the previous day's 10% fall, with chief executive Kenton Jarvis noting that late booking demand had been strong even as passengers increasingly wait for attractive deals before committing.