Easyjet hit by higher fuel costs

Easyjet said it had gained market share in Europe

Budget airline Easyjet has said the severe weather in Europe in December cost it £18m.

Strike action by air traffic controllers in the final three months of the year cost a further £6m. Revenue lost from both disruptions was £7m.

Despite these factors, Easyjet said revenue in the final quarter of 2010 grew 7.5% to £654m, while passenger numbers were up 8.8% to 11.9 million.

However, it warned higher fuel costs would lead to bigger half-year losses.

The loss from October last year to March this year would be between £140m and £160m, compared with a loss of £78.7m a year earlier, the airline said.

Like most northern-hemisphere airlines, Easyjet makes most of its profit during the summer holiday season.

Easyjet also said that it gained market share across Europe.

“Against a difficult economic backdrop aggravated by severe weather and air traffic control strike action, Easyjet was able to deliver a solid trading performance and grow total revenue whilst improving its position in mainland Europe,” said the airline’s chief executive, Carolyn McCall.

She also called on the government “to provide sensible legislation for airport regulation and air traffic control”.

The severe weather highlighted the need for airports to invest in infrastructure to keep passengers moving, she added.

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