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EasyJet reported a 70% year-on-year decline in fiscal third-quarter profit on Thursday. The airline said disruption from the Iran war had increased costs during the quarter.

EasyJet PLC (LSE:EZJ) reported a 70% fall in third-quarter profit as the Middle East conflict pushed up fuel costs and weakened booking demand. The low-cost airline, which has also been busy fielding takeover offers in recent weeks, posted headline profit before tax of £85 million for the three months to June, down from £286 million a year earlier.

Results were dragged by higher fuel prices and lower consumer demand due to the Middle East conflict.

The European Union is preparing a review of airline ownership rules to prevent foreign investors from gaining effective control of carriers, an EU official said, a move that could complicate U.S. ​bids for low-cost airline easyJet.

European budget aviation has spent the better part of the year navigating heavy turbulence. Rising jet fuel costs and geopolitical route disruptions have battered public valuations, pushing market sentiment toward distress levels.