EasyJet offsets half of expected £185m fuel bill rise to steer clear of turbulence

Published on Thursday 24 July 2008 10:59

LOW-COST airline easyJet has said it has offset more than 50 per cent of an anticipated £185 million rise in its annual fuel bill.

In a trading update, the Luton-based operator forecast pre-tax profits of up to 120m for the year to the end of September, with revenues and cost-saving measures helping it to cope with soaring oil prices.

Third-quarter passenger numbers were up by 16 per cent amid continued strong growth at Gatwick and mainland Europe, although the company added that capacity growth would be reduced this winter.

EasyJet made underlying profits of 191.3 million last year, and recently moved to thin out the amount of flying it does at less profitable times, reallocating capacity towards better value opportunities such as Gatwick, France and Italy.

The airline operates 356 routes from 20 bases, and said it was pleased with its overall performance, with revenues per seat up by 12 per cent to 46.36 in the three months to June 30.

The company said: "Overall, the UK regional bases are delivering good results particularly at Newcastle and in our Scottish bases."