EasyJet interim losses narrow

EasyJet, the budget carrier, narrowed interim pre-tax losses following a milder European winter and less industrial action, despite higher fuel costs.

The no-frills airline yesterday attributed “exceptionally low levels of flight disruptions” to its shortening of first-half pre-tax losses from £153 million to £112 million year-on-year, in spite of a £100 million jump in fuel costs.

The airline’s ability to push through higher ticket prices to cash-strapped consumers, as well as increase checked baggage and administration fees, drove up EasyJet’s average revenue per seat 11.9 per cent year-on-year to £50.47. However, the extra fuel costs combined with increased staff and aircraft maintenance expenses pushed up the total cost per seat 7.4 per cent to £54.34.

In the six months to March 31st, total group revenues rose to £1.47 billion, compared with £1.27 billion a year ago and the basic loss per share narrowed from 26.6p to 21.2p. EasyJet has traditionally reported losses over the slower winter period. It usually offsets this by increasing capacity during the profitable summer vacation season. – (Copyright The Financial Times Limited 2012)