EasyJet’s boss said fare increases at the airline are about the same as a “couple of coffees on the high street”. The budget carrier reported its average one-way fare for the six months to the end of March was £65, a £2.90 increase compared to the same period last year.
Between October and March, passenger numbers were up 8% year on year, while Easter demand was “particularly strong”, said the airline in its update.
Lundgren, chief executive of easyJet, also said there has been no impact on sales to Turkey and Egypt since the attacks on Israel by Iran at the weekend.
The airline announced on Tuesday (April 16) that it has cancelled flights to and from Tel Aviv for the whole summer, citing safety concerns following the drone and missile attacks.
EasyJet said it had reduced its winter losses despite rising fuel costs and the conflict in the Middle East, which resulted in a direct impact of about £40 million in the first half.
Meanwhile, Julie Palmer, partner at consultancy Begbies Traynor, commented: “EasyJet has shown why it’s one of the market’s favourite airlines currently, with its trading update this morning evidence of a company deserving of its recent return to the FTSE 100.
“As we head into the all-important summer months, this momentum is likely to continue with the airline noting a rise in bookings and further price increases compared to last year.
Mohsin Saleh, associate partner at OC&C Strategy Consultants, also noted how rising passenger numbers reflect the trend for consumers to prioritise holidays, despite the sharp increase in the cost of air travel.
“This increase is in spite of price pressures, with the average airfare for the euro area increasing by 38% since January 2019, showing that consumers are prioritising travel spend over other discretionary spending.” commented Saleh.
Johan Lundgren, chief executive of easyJet, made his comments as he outlined the carrier’s half-year trading update, which showed seasonal losses were trimmed by more than £50 million.
Asked if he had seen any signs of travel fatigue or passengers cutting back amid cost-of-living concerns, Lundgren said he had seen no changes in demand.
“We do not see any difference in the momentum, the demand continues to build,” he said, noting the continued popularity of traditional destinations such as Majorca, Malaga, Portugal and cities such as Amsterdam.
