Price war clips easyJet's wings

THE price war between the airlines is keeping the pressure on easyJet but the Luton-based budget carrier said trade was improving after a poor winter.

In an upbeat assessment of third-quarter trading, chief executive Ray Webster said easyJet had enjoyed 'a good summer to date' but said yields - the money it makes per passenger - are down year on year.

'We remain highly dependent on the final quarter's trading [the July-September high season] in what are still uncertain market conditions for the achievement of our full profit potential,' he said.

The airline has been trying to ease the pressure on yields by reining back its expansion and the absorption of so many more routes, after its acquisition of Go a year ago, and keeping its planes flying fuller.

'As planned, the slower rate of capacity increase has contributed to reduced pressure on yields,' the company said. 'The average fare achieved in the third quarter was £46.08, representing a decline of 2.8% from the comparable period in the prior year.

'This is an improvement upon the decline seen in the first half of the financial year.'

But Webster indicated that easyJet could soon be back on the expansion trail. 'We continue to see good growth opportunities in Europe and are well-placed to take advantage of these,' he said. 'Over 80 airports responded to our tender for network expansion and a shortlist has been drawn up.'