Charging for checked baggage means each easyJet passenger now spends an average ”7.45 more than their ticket price - a 93 per cent increase compared with last year.
easyJet introduced its checked baggage charge in October last year, making a big impact on its bottom line. Latest figures from the airline for April, May and June - its third quarter - confirm the 93 per cent year on year jump in ancillary revenue from the previous average of ”3.87.
The airline said the increase was mainly driven by the introduction of the baggage charge, although the strengthening euro also played a part. Revenue from checked baggage charges is expected to grow further still - easyJet increased the price from ”3 to ”5 per bag up to 20kg in March.
easyJet said capacity at Stansted would be cut by 12 per cent, with growth re-directed towards Gatwick, France and Italy. It blamed a hike in Stansted”s airport charges and the general market downturn.
”We have 13 aircraft at Stansted, this will be the equivalent of taking one and half aircraft out,” said a spokesman.
Overall, the airline cut its growth forecast to 4-6 per cent. ”In the last few years, we have grown at roughly 15 per cent a year,” said the spokesman.
Fuel bills rise
The airline said its fuel bill had increased by ”185 million this year and that this would affect profits. However, it claimed to have offset 50 per cent of its fuel increase through cost-cutting and charging more for extras and was on target to make pre-tax profits of ”110-”120 million, down from 2007”s ”191.3 million.
The airline warned that winter would be ”challenging” for the whole industry because of fuel costs. easyJet has 28 per cent of its 2009 fuel needs hedged at around $126 a barrel ” just above today”s price.
easyJet said its London operation, particularly Gatwick, was performing well, especially on routes to France and Italy. It added that regional bases were also delivering good results but that its operation at Belfast International, where rival Jet2 has a base, was ”challenging” due to increased competition. It admitted that its base at Madrid, where Ryanair also has a big operation, was also problematic.
Gary Noakes