Low cost airlines boom

Source: Exec Digital UK

Date :06/10/2008 09:00:43

EasyJet plc has reported a 22 percent increase in customers, while Ryanair’s customers were up 20 percent.

While British Airways’ premium class passenger numbers were down 8.6 percent in September, Easyjet’s passenger growth was up 22 percent for the same period.

Easyjet’s growth for the past year was up 17.3 percent overall, and its load factor (how filled its planes are) was up 86.9 percent in the past year.

The company has said it will be “relentless” in improving efficiency and addressing costs, and hopes to absorb around half of the rising fuel costs.

Meanwhile rival airline Ryanair Holdings plc reported a 20 percent growth in its September customers, though both companies expect growth to slow as customer demand reduces over the winter.

Easyjet shares nevertheless closed at 327.75 pence, down 46 percent this year, demonstrating the uncertainty in air travel as recession and fuel costs loom.