EasyJets filled by promotional offers

Published on Monday 7 July 2008 20:56

PROMOTIONAL offers kept EasyJet's planes close to capacity in June, according to figures released yesterday.

The no-frills airline said its load factor – a measure of how full its planes are – stood at 86.9 per cent, marginally ahead of the same month last year.

EasyJet recently offered up to 20 per cent off two million seats between 16 June and 17 July, following a similar promotion covering May and June. The airline said it carried 4.11 million passengers last month, an increase of 19.5 per cent on a year earlier.

Passenger numbers were boosted following the acquisition of GB Airways from British Airways at the start of this year.

The company said revenues per seat continued to improve and that nearly 70 per cent of the seats available for the second half of the year had been sold.

Gert Zonneveld an analyst at Panmure Gordon, described the update as encouraging and said underlying demand appeared robust. He added: "Concerns about a further economic slowdown remain and, given the relatively high proportion of leisure travel, it is doubtful whether EasyJet can fully pass on its rising costs through higher fares".

Operators such as EasyJet are fighting to fill their planes while the industry is facing oil prices of almost $150 per barrel.

Rival Ryanair recently stepped up the pressure by offering 250,000 seats for 10.

Last week, Ryanair said it had carried 5.17 million passengers in June, an increase of 19 per cent on a year earlier thanks to its growing route network.

Meanwhile, Air France-KLM yesterday reported a 2.6 per cent passenger rise in June, while its load factor fell to 81.5 per cent.