BUDGET airline Easyjet said that half-year losses would be smaller than expected as its revenues were boosted by higher baggage charges.The Luton-based group, the biggest carrier at Liverpool John Lennon Airport by passenger numbers, said revenue growth per seat in the six months to March 31 will be better than expected at 10%, with around half the improvement driven by higher fees and charges.Easyjet also received a boost from the unseasonably mild weather experienced in the period, which led to “unusually” low levels of cancelled flights, while an uplifting TV advertisement featuring music from Liverpudlian rockers The Wombats also helped.The improved performance means the group now expects to report a pre-tax loss for the six months to March 31 of between £110m and £120m, compared with previous expectations of £140m to £160m and a £153m loss last year.The group, like many airlines, always reports a loss in the first half of its financial year.The group previously reported higher revenues for first three months of its financial year as as it raised its first-bag charge by 16.9% to £4.70 per seat. Total fees and charges increased by 26.7% to £5.88 per seat.Easyjet chief executive Carolyn McCall said: “We continue to expect the environment for airlines to remain difficult.”The Liverpool office of stockbroker Charles Stanley described the update as “encouraging”It added: “Carolyn McCall’s second full year in charge is shaping up nicely.”Read
