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EasyJet predicts seat revenue to decline
EasyJet has forecast total revenue per seat to decline in the region of 5% to 10% in the second half of the year.
But the budget carrier said it was still on course to raise pre-tax profits by up to 50%
“We will continue to offer low fares throughout the summer to ensure great deals for our customers and high load factors,” a statement said as the airline revealed a 13.8% rise in passengers in May to 2.9 million.
“In the second half we will see increased momentum in cost reductions with unit costs, excluding fuel, down in excess of 5% year on year,” the airline said. “This anticipated decrease in unit costs reflects continued improvements in the cost of aircraft ownership, careful management of airport related costs and a reduction in overheads.
“For the year to September 2007 our guidance remains unchanged, and we expect to increase pre-tax profits by 40% to 50% compared with the previous year.”
EasyJet started eight new routes in May.
by Phil Davies
Phil Davies
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