easyJet charges on

Luton-based easyJet has announced a 22% jump in annual pre-tax profits to £581m for 2013-14.  The airline could break the 70m passenger barrier in 2015.  It has on order around 170 Airbus A320s, some replacing older A319/320 aircraft.

In a cautionary note Chief Executive Caroline McCall said easyJet was “quite concerned” at the prospect that airport landing charges could rise at Gatwick to cover the costs of a second runway.

“We make £8 profit per seat and our average price is just £60,” she said. If Gatwick’s charges doubled to an average of £15 to £18 as predicted by an independent commission examining the case for expansion, “that is quite worrying in terms of our economic case.”  Asked again about the prospects of operating out of Heathrow she did not say no.  Clearly the high profile and the prospects of taking on British Airways head to head are in the easyJet mindset.  See  Little Red leased out  in this issue.

easyJet says that the bookings ratio by existing customers is now 57%, up from 50% in 2010.  To drive this trend still further the airline is trailing a frequent flyer loyalty scheme to reward regular passengers.  This has been running for the past three months, has been well received, and involves more than 15,000 passengers.  www.easyjet.com

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