easyJet losses swell amid higher fuel costs
Budget airline easyJet has today revealed pre-tax losses for the six months to 31 March swelled to £153 million, compared with a loss of £79 million in the same period a year earlier.
The no-frills airline attributed the loss to rising fuel costs and the challenging economic environment.
Jet fuel costs continue to rise due to the political unrest in the Middle East and costs during the six month period were up 40%, according to the airline, and prices are expected to rise during the latter half of 2011.
Meanwhile, the airline said passenger numbers were up 12% in the period.
Carolyn McCall, the airline’s chief executive, comments: “The past six months has been tough with sharply rising fuel costs combined with cautious behaviour by consumers and an adverse impact from taxes on passengers.”
In related news, earlier this year, the International Air Transport Association (IATA) revised its forecasts for the airline industry on the back of surging oil prices.
IATA said global airlines will make a profit of $8.6 billion (£5.3 billion) for 2011 – down from the $9.1 billion it estimated in December.