EasyJet became the latest airline to warn of difficult trading conditions yesterday as shares across the sector came under pressure.
The no frills airline said its passenger load factor - a measure of how full its planes are - fell to 83.1% last month compared with 86.4% last year. Shares in the company fell 7%, closing 49p down at 631p. Other stock in traditional carriers such as British Airways and Lufthansa also fell. Analysts warned that stronger profits are encouraging airlines to buy more planes and fly more routes, flooding the market with capacity and putting fares under pressure. EasyJet admitted yesterday that fare revenue was one of its biggest concerns.
"I have been concerned for some time now about the amount of capacity going into the European short-haul market," said Chris Tarry, an industry analyst. "If there is too much supply, you have to cut fares to fill the seats."
EasyJet struggles to fill its new aircraft
Print