Easyjet passenger numbers surge

Easyjet passenger numbers surge

Tough competition and high fuel prices are hurting Easyjet
Easyjet has reiterated its warning that profit margins are under pressure, despite a big increase in passenger numbers in July.
The airline said it carried 2.41 million passengers – up 28% on the same period last year.

Its load factor – the number of seats filled per flight – stood at 88.1%, up from 85.6% a year ago.

But it said earnings remained under pressure because of stiff competition and rising oil prices.

Easyjet shares dived in June after the group warned that soaring fuel costs and a price war in the no-frills airline sector would dent its performance this year.

‘Bloodbath’

At the time it said 2004 pre-tax profits would “at least exceed” last year’s £52m ($95 million) but warned yields – the amount of money made per passenger – would fall short of earlier forecasts.

“Trading during the third quarter was as expected, and the outlook for the full year remains as indicated in our statement of 7 June,” chief executive Ray Webster said.

Tough conditions prompted rival Ryanair to warn of a winter “bloodbath” in the no-frills sector earlier this week.

The Dublin-based firm said its yield was down 6% and could drop as much as 20% in the winter.

http://news.bbc.co.uk/1/hi/business/3540886.stm