EasyJet orders bigger planes to keep costs down

PanARMENIAN.Net - British budget airline easyJet stepped up its efforts to lower operating costs by ordering bigger planes after it posted a wider first-half loss on Tuesday, May 16 which sent shares down 6 percent following recent strong gains, Reuters reports.

EasyJet, Europe's second largest low cost carrier after Ryanair, said the weak pound and the late timing of Easter this year had hit its results for the six months to the end of March.

The company said it was seeing signs that revenue pressure was easing with rivals holding back on growth in some of its big markets. It also announced plans to convert part of an Airbus order to larger planes to help drive down costs.

But that came too late to help the first half when the headline loss before tax rose to 212 million pounds compared to a loss of 21 million a year ago.

The average analyst estimate was for pretax loss of 195.75 million pounds, according to Thomson Reuters estimates.

The company said strict cost control and easing price pressures meant it still expected to meet its full-year targets.

"Looking ahead, we are seeing an improving revenue per seat trend as well as the continued reduction of competitor capacity growth" Chief Executive Carolyn McCall said. "Cost performance for the full year will continue to be strong.

EasyJet is seeking a new operating licence in another EU member state to ensure it can continue flying within and between EU member states following Brexit, which it said it would secure before the summer.

EasyJet is seeking a new operating licence in another EU member state to ensure it can continue flying within and between EU member states following Brexit, which it said it would secure before the summer.