UK budget carrier EasyJet is scaling back its growth for the winter and expects to increase capacity by around 4-6% during the less-profitable winter season.
EasyJet passenger numbers for the three months to 30 June 2008 increased 16% to 11.5 million on 18% additional capacity. But high fuel costs are prompting more cautious growth for the coming winter season.
“Flying at less-profitable times has been thinned and EasyJet will reallocate capacity from weaker performing bases towards higher value opportunities including [London] Gatwick, France and Italy,” it says.
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The airline says it will reduce capacity at London Stansted by 12% this winter; rival budget carrier Ryanair has already outlined its own high-profile capacity cuts at the airport.
Last month EasyJet also began a 90-day consultation of the future of its Dortmund base in Germany, saying stringent opening hours meant it was struggling to build up the necessary economies of scale.
“In the current environment flexibility is vital and EasyJet continues to review its schedule and may make further adjustments both to eliminate unprofitable flying and to seize any opportunities that may arise as capacity exits the market,” it adds.
EasyJet, in a third quarter trading update today, says it expects pre-tax profits to be around 40% down for the 12 months ending September 2008 at between £110-120 million ($220-239 million) amid increased fuel costs.
Source: Air Transport Intelligence news
Source: Flight International
