EasyJet profits could fall by more than 40 per cent this year because of the surge in fuel costs, the airline said on Thursday, triggering a steep fall in share prices across the aviation sector.

EasyJet shares fell 37½p or 10 per cent to 332½p. British Airways fell 8 per cent, Ryanair by about 3 per cent and Air France-KLM by 5.3 per cent, largely wiping out the previous day’s gains, which had come in response to this week’s fall in the crude oil price.