Thursday, 7 February 2008

EasyJet on track with profits

EasyJet, the low-cost airline, continues to expand faster than it can fill seats but the carrier said yesterday that its profit forecast was unaltered. Easyjet reported that it carried 9.1 million passengers in the three months to the end of December, which is up 12.4% on the same period a year before.

EasyJet, however, is in the middle of a rapid expansion after spending $4 billion (£2 billion) on 104 new Airbus aircraft and available seat kilometres. The industry measure of total capacity grew faster than passenger numbers at 17.7% and this resulted in emptier aircraft and the carrier’s load factor fell a percentage point to 80.8%.

The load factor in January, which easyJet also released today, was even worse, down 2.9 percentage points on the same period last year. However, easyJet has rejected the gloomy predictions for the sector made by its rival Ryanair this week. (source: Timesonline)

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