EasyJet sees increase in European passengers

Budget airline easyJet today said it had seen a 20% rise in European passenger numbers.

EasyJet said non-UK customers represented 51% of its business in the three months to December 31 as a strong euro helped push total revenues up 32% to £550m (€585m).

EasyJet chief executive Andy Harrison said the migration of European passengers from normally higher cost services had more than made up for the slowdown in discretionary travel caused by the economic downturn.

“In the current economic climate there is a ”flight to value“ with European consumers choosing the benefits of easyJet’s great value network serving primary airports,” he said.

The company said the rising cost of fuel last year prompted it to decide to cut down on the amount of flights operated at less profitable times. In the UK this resulted in a 17% reduction in services from Stansted as it focused on flights from Gatwick, which saw a growth of 37%.

In Europe the company increased its capacity from Milan by 75%, from Paris by 33% and Madrid by 23%.

The firm said these were markets “in which easyJet’s business model will enable it to gain share during an economic downturn and where weaker competitors are exiting”.

A 71% rise in the ancillary revenues – including the charges for checked in baggage, in-flight sales and hotel and car bookings – helped push revenues per seat up 23% to £45.57 (€48.54) in the period.

Shares were up more than 10% as easyJet said revenues growth was ahead of expectations.