Low-cost airlines may be struggling with the financial burden of record fuel costs but passengers are still snapping up tickets in their droves, easyJet said today, as it revealed strong demand for flights last month.
Europe's second largest no-frills carrier said the amount of seats sold per flight, otherwise known as the passenger load factor, had risen to 91% in August compared with 87% in the same period last year. Passenger numbers, buoyed by the acquisition of GB Airways and fleet-expanding aircraft orders, rose by nearly a quarter to just under 4.6 million.
The easyJet numbers are broadly similar to figures announced by Europe's biggest budget airline, Ryanair, which said this week that its August load factor was 90% and that passenger numbers, again driven by a fleet expansion, had risen by 19% to nearly 5.8 million.
Analysts said the August figures showed that, despite the economic slowdown across Europe, consumers are still flying abroad for their holidays and spending cutbacks have yet to hit low-budget, short-haul travel.
"Summer trading has evidently been pretty strong. People have not been willing to sacrifice their summer trips," said Andrew Lobbenberg, analyst at Royal Bank of Scotland.
However, he added: "The issue about whether the consumer stays strong in the dark days of October, November and December remains a concern."
Ryanair and easyJet's strong performances are scant consolation for an airline industry that is facing a combined loss of $9.3bn (£5.2bn) over the next two years.
UK-based Zoom became the 25th carrier to go bust last month when it filed for administration and disrupted the travel plans of thousands of passengers. The collapse of Zoom alarmed some industry observers, who expected carriers to go out of business during the traditionally quiet winter period but not during the summer season, when airlines have strong cashflows and are normally able to stave off creditors.
Despite the strong August, which analysts had banked on, Ryanair still expects to make its first annual pre-tax loss in 20 years this year because strong ticket revenues are not enough to cover an even greater increase in costs.
High oil prices, which drove Zoom and 24 other carriers out of business, are also causing severe financial problems for the industry's better-off players such as Ryanair, which is heading for a loss despite being one of the most profitable airlines in the world.
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