Easyjet shares take a nosedive

BUDGET airline easyJet lost over a fifth of its market value yesterday as it joined rival Ryanair in giving bleak comments on rising fuel costs and a price war.

The company also disappointed analysts by warning that 2004 pre-tax profits were likely to be below original consensus forecasts only a month after publishing its interim results.

EasyJet said if the average fuel price remained at the current $360 per tonne, its results would be adversely affected by £4m at current exchange rates. Crude oil prices have soared amid rising tensions in the Middle East.