EasyJet today announced deeper-than-expected fare cuts as competition for budget passengers heated up to send its shares sharply lower.
Europe's biggest no-frills airline said fares fell 6 per cent in the four months to end-January. Its shares fell 14 per cent on the London Stock Exchange.
EasyJet's statement was a reminder of the gloom facing the airline industry - fears of war, higher oil prices, recent security scares at London airports and economic uncertainty.
EasyJet said the decline in fares in the six months to end-March would be broadly in line with rivals Ryanair.
Ryanair this month reported its fares for the three months to end-December fell 8 per cent year-on-year - in part because of free tickets and discounts offered to promote new routes.
British Airways, Europe's biggest carrier, is also putting pressure on ticket prices after responding to the budget carriers' threat with promotions.
Ryanair shares fell 6 per cent to €6.1 in morning trade; British Airways shares were off more than 5 per cent at 104-1/2p in London.