EasyJet reports 'encouraging' booking figures

No-frills airline easyJet today reported “encouraging” levels of advanced bookings for the spring and summer despite economic uncertainty and the growing prospect of war.

Some airlines have raised concerns that business could be impacted by a downturn in passenger numbers and rising oil prices if military conflict against Iraq goes ahead.

But easyJet chairman Sir Colin Chandler said he remained “confident” about the group’s prospects as the benefits of its takeover of rival Go Fly begin to show.

Addressing easyJet’s annual general meeting in Luton today, Sir Colin also commented on recent media speculation over a possible takeover of BA’s loss-making German subsidiary, Deutsche BA.

He said: “The rationale for the option to acquire Deutsche BA remains valid, but easyJet has to be certain that its business model can be fully applied before deciding whether to exercise the option.”

The group said it expected to give an indication of its intentions regarding Deutsche BA later this year.

Commenting on easyJet’s acquisition of Go, which it bought last May for £347 million, Sir Colin said the integration of the two airlines was proceeding “much faster than originally planned”.

Pricing and sales for both easyJet and Go were now conducted from unified systems and the operations were running well, he added.

EasyJet was launched in November 1995 and now offers 89 routes from 36 European airports with 64 aircraft.

Last October, the airline agreed a deal to buy 120 new planes from Airbus.

The company reported pre-tax profits of £71.6m and turnover of £552m for the year to September 30.

Shares in the group slipped 2.2%, down 5p to 225p, today.