Stelios still unhappy despite EasyJet cutting winter losses

The firm said yesterday that losses during the six months to the end of March were £112 million, compared to £153m the winter before. That was despite an £87m rise in fuel costs.

EasyJet said it had sold almost half of its seats for the summer, when it makes its money. That is in line with the year before, although the carrier has increased its capacity by 7 per cent this year.

UK director Paul Simmons said the airline had increased its passenger volumes on Scottish routes by 10 per cent in the period by introducing new destinations and adding capacity on flights to London as rival BMI, now sold to BA owner IAG, scaled back.

Simmons said EasyJet’s position at the budget end of the market meant it was insulated to a certain extent from wider economic problems. But he said the latest rise of air passenger duty – the UK government’s tax on air travel – added significantly to the cost of a family travelling abroad.

“What we are seeing is that we have to work a lot harder for every seat we book. It’s a very price sensitive market,” he said.

The positive results failed to excite markets, which had already pencilled in smaller losses for EasyJet following its previous update.

EasyJet’s founder and largest shareholder, Sir Stelios Haji-Ioannou, yesterday indicated he remained unhappy with the company’s management.

In the latest move of a long-running dispute, he publicly tabled a number of questions to the firm relating to executive pay and plans to buy more A320 aircraft, which he referred to as “over-priced, old technology”.