easyJet offsets losses with hidden customer charges

Published:

06/05/2009

Topic:

Press Release,Flights

Commenting on easyJet's interim results for the six months to 31 March 2009, Bob Atkinson, travel expert from travelsupermarket.com said:

"Although easyJet has announced pre-tax losses of £129.8m, their interim results show that revenue per seat is up by 14.9 per cent, passenger numbers are up by 2.9 per cent and there has been significant growth of 21.8 per cent outside of the UK on European-based routes.  Furthermore, easyJet is predicting strong forward sales despite a struggling market.

"As the report clearly states, an increase in revenue per seat has been helped by 'improved ancillary revenue performance', which is up by an astonishing 51.3 per cent to £213.6m, representing over one fifth (20.69 per cent) of revenues compared to 15.8 per cent last year. It is clear that easyJet is focusing on driving up these stealth charges to drive the bottom line.

"Ancillary charges such as baggage and insurance options, through which easyJet is cashing in, are often unclear and difficult to remove when booking online.  Whilst credit and debit card charges are unavoidable, the cost of a booking can increase by up to 100 per cent of the flight cost when bags, insurance and card charges are factored in.

"Our own research at travelsupermarket.com demonstrates that customers are dissatisfied with these charges.  A recent survey by Which? also shows that 77 per cent of members would like to see the cost of checking in luggage included in the advertised price of their airline ticket.  A further three quarters thought that check-in fees should be included in the price of their ticket and credit and debit card charges should be included up front.

"As currency exchange rates along with the cost of fuel fluctuate and demand for flights is difficult to predict during the economic downturn, easyJet will be challenged.  However, we believe there is an opportunity for the company to be more transparent about ancillary charges, and lead the way for other low cost airlines."

-Ends-

Full report can be found at:
http://www.easyjet.com/common/img/interim_results_2009_statement.PDF

Download This Press Release

Download as RTF

Related Links

Related Resouces