European cheap flight updates

Despite difficult market conditions, including strong competition and rising fuels prices EasyJet has recorded an increase in passenger numbers of 21% in the last year. They have even increased their load factor by 0.7% in the same period.
Profits are up 11% in the second half of the year. This was achieved when the fuel cost per seat went up 68% in the last 6 months (47% for the year).


EasyJet added a total of 72 routes in the year bringing their total to 212.

EasyJet was one the first budget airlines in the UK, with their cheap flight model being adopted by numerous 'no frills' airlines. Now their emphasis has been on cost cutting and efficiency to counteract the effect of rising oil prices.

Ray Webster, Chief Executive, said:

"We'��ve made sound progress in the year with good growth in passenger numbers and revenue. Despite the fuel price increases we’ve minimised the rise in costs and, excluding fuel, our cost base per seat has fallen by a useful 4.4%: indeed we accelerated our reduction in ex-fuel costs during the year, clearly benefiting our profits. I’m pleased also with the expansion of our network and with 72 new routes added we are in good shape for future growth.

In the current financial year we expect to deliver capacity growth, measured by available seats, of 15%. Our strong focus on controllable costs will continue and should result in a 3-5% reduction in cost per seat, before fuel. While we anticipate a slight reduction in total revenue per seat, ancillary revenues will improve with double digit percentage growth supported by a series of new initiatives. Overall, we therefore expect to achieve mid to high single-digit percentage profit growth." Ray Webster, Chief Executive, said:

“We’ve made sound progress in the year with good growth in passenger numbers and revenue. Despite the fuel price increases we’ve minimised the rise in costs and, excluding fuel, our cost base per seat has fallen by a useful 4.4%: indeed we accelerated our reduction in ex-fuel costs during the year, clearly benefiting our profits. I’m pleased also with the expansion of our network and with 72 new routes added we are in good shape for future growth.

"In the current financial year we expect to deliver capacity growth, measured by available seats, of 15%. Our strong focus on controllable costs will continue and should result in a 3-5% reduction in cost per seat, before fuel. While we anticipate a slight reduction in total revenue per seat, ancillary revenues will improve with double digit percentage growth supported by a series of new initiatives. Overall, we therefore expect to achieve mid to high single-digit percentage profit growth."

It is amazing how EasyJet can achieve results like this in the present climate. I suppose their secret is to be brave and avoid fuel surcharges annd wait for customers to defect from the airlines levying the charge.