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Easyjet to reduce flight numbers Easyjet to reduce flight numbers
(10 minutes later)
UK budget carrier Easyjet will reduce its flight numbers for the winter 2008/2009 season to combat the challenging economic climate. Budget airline Easyjet will cut flight numbers over the winter to combat the challenging economic climate and high fuel price that has hurt profit growth.
The news comes as the airline announced third quarter results showing total revenue climbed 32% and passenger numbers rise 16%. Easyjet said its annual fuel costs have increased by about £185m. As a result, its full-year earnings will be less than many analysts had been expecting.
At Stansted capacity will be cut by 12% this winter, while overall capacity will grow by 4% to 6%. It will cut capacity at Stansted by 12% over the 2008/2009 winter. Easyjet shares fell 3% in London on the news.
Record fuel prices have hurt budget airlines and several have folded. Record oil and fuel costs have hurt airlines and several have folded.
Earlier this month, Ryanair said it would cut about 250 flights from Stansted this winter as it tries to offset the increased oil prices.Earlier this month, Ryanair said it would cut about 250 flights from Stansted this winter as it tries to offset the increased oil prices.
US business-class airlines Eos and Maxjet and UK business airline Silverjet all recently collapsed when their finances dried up. US business-class airlines Eos and Maxjet, and UK business airline Silverjet all recently collapsed when their finances dried up.
Cost-cutting Easyjet said it would also implement a further raft of cost-cutting measures including reducing the number of flights during less profitable times and reallocating aircraft from less popular bases to busier areas.
Easyjet has said its fuel costs have increased by about £185m for the full year and this will reduce margins.
It will also implement a further raft of cost-cutting measures including reducing the number of flights during less profitable times and reallocating aircraft from less popular bases to busier areas.
"In the current environment, flexibility is vital and Easyjet continues to review its schedule and may make further adjustments , both to eliminate unprofitable flying and to seize opportunities," said a company statement."In the current environment, flexibility is vital and Easyjet continues to review its schedule and may make further adjustments , both to eliminate unprofitable flying and to seize opportunities," said a company statement.
Despite industry fears that consumers would reign in their spending and cut down on holidays, Easyjet's total passenger numbers have continued to increase with particularly strong growth at Gatwick airport and on routes to France and Italy. Despite industry fears that consumers would rein in their spending and cut down on holidays, Easyjet's total passenger numbers have continued to increase with particularly strong growth at Gatwick airport and on routes to France and Italy.
Total revenue climbed 32% and passenger numbers rise 16% in Easyjet's third-quarter.