Low-cost airline easyJet said today that half-year losses would be smaller than expected as its revenues were boosted by higher baggage charges.

Stelios Haji-Ioannou has sparked a fresh row with the EasyJet airline he founded by demanding an increase dividend payments, it was reported today.

EasyJet founder Stelios Haji-Ioannou is poised to go into battle with the airline he set up 16 years ago by launching a potential rival called Fastjet.