EasyJet passenger revenues hit by fuel costs

Budget airline easyJet reported mixed fortunes today as it said higher passenger revenues had been offset by the latest rise …

Budget airline easyJet reported mixed fortunes today as it said higher passenger revenues had been offset by the latest rise in fuel prices.

The company, which has insisted it has no plans to introduce a fuel surcharge, carried 2.59 million passengers in June, a 15.4 per cent improvement on a year earlier as the airline benefited from the introduction of new routes.

The increase in popularity prompted easyJet to forecast an improvement in revenues per seat in the financial year to the end of September. Sales are running 22.5 per cent ahead across the last year, at €1.26 billion.

Chief executive Ray Webster said: "We experienced a more favourable revenue environment during the month, but this has been balanced by an unfavourable movement in the spot price of jet fuel. "Our profit guidance, stated at the time of our interim results in May, remains unchanged."

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In May, easyJet said it expected profits to be below last year, after half-year losses widened to €31 million in the wake of a 51 per cent rise in fuel prices, which represent around 18 per cent of the company's cost base.

Despite the increase in overheads, easyJet and rival Ryanair have both refused to follow the lead of British Airways and Virgin Atlantic in imposing fuel surcharges on their customers. During the month, easyJet launched six routes from its newest base at the Swiss city of Basel.