Posts Tagged ‘airlines’

easyJet profits slide as oil prices soar

Wednesday, May 7th, 2008

Low cost airline easyJet has said that the increasing price of oil is continuing to dent its profits.

For the six months to 31 March the firm made a £57.5m loss, including £9.1m of costs from its purchase of GB Airways, against a £17.1m loss the previous year.

Fuel costs in the April to September are set to increase by at least £45m, the airline added.

The price of jet fuel has risen 35% over the last three months and is now 80% higher than last year, said the airline’s chief executive Andy Harrison.

easyJet said its fuel bill would also rise by an extra £2.5m for every $10 rise in the price of a barrel of oil.

Despite this, passenger numbers in the first half of the year rose by 15% to 18.9 million, whilst revenue grew 24% to £892.2m.