Easyjet hails 'resilient' performance despite downturn

Updated: 05:00 EST, 29 July 2009

No-frills airline easyJet today said it had enjoyed a 'resilient' third quarter as it benefited from rivals slashing capacity and non-UK holidaymakers taking advantage of the strong euro.

The group carried 2.9per cent more passengers in the three months to June 30, to 11.9 million, with total revenue per seat up 10.9per cent to £51.41.

It said a 4per cent reduction in capacity across the market by embattled carriers had helped, while this year's late Easter also provided a fillip.

Rivals boost: Easyjet said a 4% reduction in capacity across the market by embattled carriers had helped it

A 34per cent hike in revenue from extra charges per seat - such as checked-in baggage and in-flight food - likewise helped the budget airline against the background of tough conditions for the airline sector.

Luton-based easyJet said more than 75per cent of summer seats were now booked, adding that it expected to make profits in its current financial year despite the industry turmoil.

It is forecasting underlying pre-tax profits of between £25million and £50million, although this is a significant drop on the £123million seen last year.

Andy Harrison, easyJet chief executive, said: 'This has been a resilient third quarter and our position has continued to strengthen as we made market share gains across Europe.

'easyJet is continuing to perform relatively well in tough trading conditions and we expect to be one of the few airlines to make a profit this year.'

Shares rose more than 3per cent on today's results, which also showed total revenues increased by 12per cent to £721million in the three months to the end of June.

It saw a 12per cent rise in passengers from mainland Europe thanks to the strength of European currencies against the pound.

The lucrative area of so-called 'ancillary revenues' reached £10 a seat after easyJet upped checked-in baggage charges and also sold more extras on board.

The group also said the board had reached agreement on a 'prudent' fleet expansion programme after resolving the long-running spat with founder and biggest shareholder Sir Stelios Haji-Ioannou over its rate of growth.

Sir Stelios last year increased his personal stake in the business to almost 27per cent amid a row over strategy.

He wanted the board to consider maintaining dividend payouts by scaling back growth plans to match market conditions.

The airline also today said it had bowed to Sir Stelios's request to hire Bob Rothenberg of accountancy firm Blick Rothenberg as a non-executive director.
He joins the board on August 1.

Over the next three years, easyJet will increase its total fleet from 177 to 207.
It also hopes to increase capacity by 4per cent by the end of September at a time when many competitors are cutting back.

Ryanair said last week it planned to reduce its winter capacity at Stansted by 40per cent.