EasyJet reported wider first-half losses as the Iran war pushed up fuel costs and weakened demand. The airline warned of continued pressure from higher prices and softer summer bookings despite strong growth in its holidays business.

Easyjet has played down fears that a jet fuel crisis caused by the Middle East will rip through its low-cost model.

The group reported a half-year pre-tax loss of £552 million, which is in line with the range it gave in a trading update in April.