Baggage charges help easyJet offset rising fuel costs
Earnings from checked baggage charges are helping easyJet to offset rising fuel costs, the airline said in a trading update today.
The charges, introduced last October, prompted the airline to stick to its original forecast of 20% growth in full-year pre-tax underlying profit.
In the three months from October 1 to December 31 2007, total
revenue per seat grew by 0.5% to £36.98 compared to the same period last year, driven by strong growth in non-UK originating passengers
The rise was ahead of expectations and was helped by the strengthening Euro and the introduction of the checked bag charge, said the statement.
The £2 charge, now increased to £3.99, helped the airline grow ancillary revenues grew by 61.9% during the quarter.
As a result of continued investment outside the UK, particularly in Italy, Spain and Switzerland, total non-UK originating passengers increased by 22% in the period. Meanwhile, UK originating passenger numbers grew by 5%.
The airline said load factors for London-based aircraft were ahead of last year, with a particularly strong performance at Gatwick.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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