EasyJet bullish on rest of year as business passengers belt up
EasyJet expects second-half revenue to rise, helped by a growing band of business travellers paying higher fares to help Europe’s second-largest low-cost carrier overcome higher fuel costs.
EasyJet, which has increased the number of flights between top business destinations, said yesterday nearly half its summer seats had been sold.
Chief executive Carolyn McCall said that would help boost revenues per seat by “the low to mid single-digit range”.
The Luton-based airline posted a pre-tax loss of £112m for the six months to March, compared with its guidance for a loss of £110-120m and a £153m loss in the 2010-11 period.
Its first-half revenue rose 16 per cent to £1.465bn, while the number of passengers carried grew 5.4 per cent to 25.2m, as it continued to grow its share of the shorthaul business travel market.
EasyJet, and other groups in the travel industry, often make a loss in that part of their financial year which does not include the summer period.
It said the first-half loss had been cut because it targeted business travellers, raised fares, had tight cost controls, and enjoyed low levels of disruption compared with previous years, and came despite an £87m increase in fuel costs.
The average fare went up by 12 per cent in the period.