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| Easyjet plans cuts as costs bite | |
| (about 2 hours later) | |
| Budget airline Easyjet will cut flights over the winter to offset a challenging economic climate and the high fuel prices that have dented profit growth. | |
| 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. | 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. |
| It will cut capacity at Stansted by 12% over the 2008/2009 winter. Easyjet shares fell 3% in London on the news. | It will cut capacity at Stansted by 12% over the 2008/2009 winter. Easyjet shares fell 3% in London on the news. |
| Record oil and fuel costs have hurt 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. |
| 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 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. |
| "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 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. | 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. | Total revenue climbed 32% and passenger numbers rise 16% in Easyjet's third-quarter. |