Summer bookings strong, easyJet boss says

Date: Wednesday 07 May 2008

Shares in easyJet took off after chief executive Andy Harrison said bookings for summer showed no sign of any economic slowdown despite the impact of rising fuel costs.

Harrison said that an economic downturn would help easyJet gain market share from its rivals. He also rued the impact of higher landing charges at Gatwick and Stansted airports describing them as "a sign of the failure of UK airport regulation".

Gatwick and Stansted are run by BAA, which is owned by the Spanish construction company Ferrovial. Easyjet said last month it would hold back increases in landing charges imposed by BAA pending a legal challenge.

Earlier today, the budget airline said that pre-tax losses widened to £57.5m for the six months ended 31 March 2008 from £17.1m the year before. The figure was in line with expectations and includes £9.1m of one-off costs associated with the integration of GB Airways.

This morning's results also showed revenue rose 24% to £892.2m while its load factor remains at 81%.

EasyJet, which issued a profit warning in March, said passenger numbers were up 15% to 18.9m while forward bookings for the summer were ahead of last year.

“Oil remains the biggest challenge and uncertainty,” the group said in a company statement.

“In the current challenging higher fuel price environment it is crucial that easyJet continues to focus on its key growth drivers; the development of its European network...continual focus on margins via tough management of costs and capturing new revenue opportunities."

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