easyJet, a takeover target for Apollo, reported a sharp drop in third-quarter pretax profit as higher fuel prices and weaker demand linked to the Middle East conflict weighed on results.

Pretax profit fell to £85 million ($113.7 million) from £286 million a year earlier for the quarter ended June 30. Revenue edged up slightly to £2.98 billion from £2.92 billion, while passenger revenue slipped to £1.74 billion from £1.76 billion.

Passenger numbers dipped to 25.8 million from 25.9 million, and the load factor—a measure of how full planes are—declined to 88.9% from 90.2%. The airline said full-year results will depend on remaining bookings and fuel prices.