EasyJet said today its average fare yields would remain under pressure after it posted a steep net loss in the first half despite carrying more passengers than last year.
The no frills airline, which acquired rival British budget airline Go last year, said its first-half net loss was £46.9 million sterling, near the bottom end of market expectations and compared with a profit of £0.8 million last year.
Chief executive Mr Ray Webster said April passengers carried was up 33.6 per cent on the same month last year but yields were down about three per cent and it was too early to "to have visibility" on the financial outcome for the full year.
"However, we expect to maintain high load factors, albeit with yields continuing to be under some pressure compared to last year, offset to an extent by the reduction in the rate of growth of capacity which occurs in the second half of the year," Mr Webster said in a statement.
Shares in easyJet closed at 187-3/4p yesterday. The stock has trailed the FTSE MidCap Index by 38 per cent since January on concerns competition was forcing it to cut fares and fears over its expansion strategy.