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Growth and profits at easyJet are tumbling as passengers jib at the budget airline sneaking up fares and hitting them with baggage surcharges.
The carrier, the biggest airline at Gatwick, today reported a 65% plunge in profits to £43 million in the year to the end of September — its worst performance since 2001.
The number of passengers carried in the 12 months — 45.2 million — is also easyJet's worst ever year-on-year growth in its 12-year history, up just 3.4% on 2007/8.
Meanwhile, its arch-rival Ryanair carried 64 million passengers in the last 12 months for a growth rate of 15%.
That marked slowdown in passenger growth — two years ago easyJet was growing at more than 17% — comes as it focuses on taking more money from passengers who generally believe they are getting better value for money by trading down to the budget airline.
Today's figures reveal average easyJet ticket fares in the year came in at more than £47.50 — around £2 or an inflation-busting near-5% higher than in 2008. Current average easyJet fares are more than £5 higher than five years ago.
But while easyJet fares have been going up on the quiet, today's figures also reveal the airline is coining it in by effectively putting a 10% surcharge on its passengers to carry their bags.
The airline reported it is on average making another £4.51 per seat in baggage charges — a staggering 62% more than it was last year.
It also makes on average another £5.26 per seat charging passengers for other ancillary revenues like in-flight food and drink, hire cars and hotel accommodation.
That has helped easyJet towards a strong recovery during the summer, booking profits of £173 million between April and September and making up for the catastrophic £130 million losses it made last winter.
Those profits compare to the £292 million loss British Airways made over the same period.
EasyJet chief executive Andy Harrison, who has been under attack from founder and non-executive director Stelios Haji-Ioannou over whether the airline should grow or conserve cash, called the trading performance “extremely resilient based on our robust yields [revenues per passengers].”
Though he warned of “a tough winter ahead”, Harrison said an improved fuel hedging policy will mean easyJet making a “substantial profit improvement in 2010”.
Reader views (8)
Ryanair have just announced that you can now fly to Budapest for £15 and land just outside Aberdeen
- Mr S.Port, London, 18/11/2009 01:33
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Easyjet are taking the mickey. I have supported them faithfully for a long time now but they are outpricing themselves, so it will be 'goodbye Easyjet'
- Sheila, london uk, 17/11/2009 14:22
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The Charter Airlines like Thompson are nearly always cheaper than Ryan Air, or Easy Jet if you are going to a popular holiday destination and you get lots more luggage allowance too
- Jonathon, Twickenham, 17/11/2009 12:35
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I guess it all depends where you start from, Flyer, but I agree that sometimes the major airlines are cheaper - they also tend to fly to somewhere close to where you want to go. It's time also that all unavoidable charges (such as taxes) were included in the advertised price.
- Paul, London, 17/11/2009 11:43
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Have to agree with Flyer, London. These 'low budget' carriers are now no longer the cheaper option, with their add-ons for many basic procedures. By stealth the price you end up paying will bear no resemblance to the 'advertised' price you start off with. Their customer service is also very poor. You may be able to get a cheap flight with these carriers but it will take expert maneuvers and extra time to avoid all the extra surcharges. Much better to book a flight with a non-budget airline where you don't have to jump through hoops to find a decent price.
- Ian Davies, London, UK, 17/11/2009 11:43
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I guess it all depends where you start from, Flyer, but I agree that sometimes the major airlines are cheaper - they also tend to fly to somewhere close to where you want to go. It's time also that all unavoidable charges (such as taxes) were included in the advertised price.
- Paul, London, 17/11/2009 11:43
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you cannot compare EasyJet with Ryanair, because ryanair is terrible!!! EasyJet is a first class air line compared to ryanair:)
- Ak, london, 17/11/2009 11:24
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Easyjet and Ryanair et al are certainly no longer always the cheapest airlines. By the time you have factored in travel to Stansted, Luton or Gatwick by train which can cost about £20+ return by train and more by taxi, cost of hold luggage, credit card surcharge on the website and cost of food on the flight, you're often better off flying with a major carrier from Heathrow.
You can travel there by Tube which is far cheaper, there are no surcharges for hold luggage, no credit card charges and a small meal on European flights is free.
I used to fly "budget" airlines a lot a few years back but now rarely do so. They have captured people's imagination and many assume they are always cheapest but this is not often the case.
- Flyer, London, 17/11/2009 09:59
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