Easyjet caution hits air shares

Cautious comments by British budget airline Easyjet on the outlook for summer pricing hit its shares and those of rival airlines yesterday, overshadowing an increased profit target after a strong quarter.

The airline is seeking a replacement for chief executive Carolyn McCall, who is joining broadcaster ITV.

While Ms McCall said she was leaving Easyjet in a strong position, the comments on pricing highlight one of the challenges her successor will face.