Low-cost airline Easyjet reported a 10.5 per cent rise in first-quarter revenues, boosting hopes that budget air travel is recovering from the slump caused by the global recession.
The airline, which is the biggest carrier at London's Gatwick airport, posted revenues of £607.5 million as total revenue per seat grew 4.2 per cent for the three months to end December.
Easyjet, whose chief executive Andy Harrison is due to leave the airline at the end of June, said passengers carried increased 9.1 per cent to 11 million in the quarter compared to the same period last year.
"Economic conditions remain challenging and we continue to expect a tough trading environment. However, the underlying performance of the business in the first quarter has been encouraging and easyJet remains on track to deliver substantial profit improvement during 2010," Mr Harrison said in a statement.
The worldwide economic downturn has battered the airline industry as consumers cut back on trips and the International Air Transport Association (Iata) forecasts the sector will lose $5.6 billion in 2010.
Shares in easyJet, which have fallen 6 per cent in the last three months, closed at 365 pence yesterday, valuing the airline at around £1.6 billion.
Reuters