easyJet grows at Gatwick

[January 23rd 2009]

Low fares airline easyJet’s trading figures for the first quarter show strong growth at Gatwick airport and in Europe.

The airline’s growth in the first quarter was focused on Gatwick and bases in Italy, France and Spain. Capacity in terms of seats flown increased by 37% at Gatwick, 75% at Milan, 33% at Paris and 23% at Madrid.

Overall, easyJet passenger numbers grew by 10.1% in the first quarter to 10.1 million. The airline now has 51% of its customers originating from outside the UK, compared to 43% in the first quarter of financial year 2007.

easyJet decided to reduce capacity at some weaker performing bases, for example Stansted airport where capacity was cut by 17% in the past quarter. The airline’s base at Dortmund was closed in October 2008.

Revenue grew by 32% to £550 million and total revenue per seat was up by 23% to £45.57. Ancillary revenues increased by a whopping 71% per seat to £8.68. Increases in checked bag charges plus better performance by in-flight products including food and beverages were largely responsible.

easyJet says that revenue growth in the first quarter was ahead of expectations and that forward bookings over the second and third quarters are in line with last year.

During the summer the number of seats available on short haul routes in Europe overall is expected to contract by 4 to 5%, but easyJet says it expects to increase capacity in the second half “by low single digit percent”. The airline says it will continue to focus growth on market opportunities at Gatwick airport and in mainland Europe.

“easyJet revenues for the first half will be ahead of previous guidance, although the unit revenue outlook for the summer remains uncertain due to the difficult macro-economic environment and any potential impact from the strengthening of the euro against sterling,” comments easyJet chief executive, Andy Harrison.

“Consequently, easyJet reiterates guidance that for the full year at current fuel and exchange rates easyJet expects to be profitable,“ Harrison concludes.

Written by: Nick Purdom

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