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Thu, May 08, 2003

Nothing's 'Easy,' As EasyJet Finds

Even the Low-Cost Airlines Face Profit Problems

Even though, partly because of its acquisition of Go Airlines, EasyJet's revenues and passenger boardings were up significantly during the first of half of this fiscal year, its profit picture didn't manage to stay in the black.

Net losses for the period were reported at just over $75.5 million, compared with a same-period profit of about a million dollars last year.

Load factors, too, improved; and April's RPMs were up better than a third, so CEO Ray Webster predicts improvement, though he isn't getting pinned down on timing or magnitude. He issued a statement that said he expects this improvement, "...with yields continuing to be under some pressure compared to last year, offset to an extent by the reduction in the rate of growth of capacity which occurs in the second half of the year."

FMI: www.easyjet.com/en

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