EasyJet eyes strong bookings

LOW fares airline easyJet Plc yesterday reported its average passenger fare in the third quarter slipped 2.8%, but said bookings for the crucial summer season showed strong growth.

Shares in easyJet were up 0.3% at 239 pence at one stage yesterday, off an earlier high of 244-1/2p. The stock has trailed the FTSE MidCap Index by 17% since the end of its first half as investors fretted about a price war with budget and full-service European rivals cutting into its profits.

EasyJet's average fare for the three months to the end of June was £46.08, an improvement on the 10.7% year-on-year drop to £37.45 in the first half.

Chief Executive Ray Webster said forward bookings for the remainder of the fiscal year to the end of September showed strong growth. "However, we remain highly dependent on the final quarter's trading, in what are still uncertain market conditions, for the achievement of our full profit potential," Webster said in a third-quarter trading statement.

BNP Paribas analyst Nick van den Brul said the average fare and the passenger load factor, which measures the number of seats filled on its aircraft, were 'pretty positive' in a market where there were probably many late bookings.

Webster said easyJet had a shortlist of six airports in six continental European countries from which to select to support its expansion in summer 2004.

"What we want to do is find partners who are passionate about building efficient airport infrastructure which is compatible with the needs of a low-cost airline. The selection could very well be made on geographic grounds and include airports we already fly to. Germany is on the list."