easyJet adds to airline industry woes

Budget airline, easyJet, is adding to the airline industry’s woes as it announces that it is to cut flights over the winter as it battles with soaring fuel prices.

Over the 2008-09 winter period, it is to reduce capacity at London’s Stansted airport by 12%.

The airline said its annual fuel costs have risen by approximately £185 million. As a result, its full-year earnings will be less than many analysts had forecast.

Soaring oil and fuel costs are having a devastating affect on the airline industry. Earlier this week, US carrier United Airlines announced further plans to reduce its workforce.

United, which is America’s second largest airline is to axe 7,000 staff and slash more than a sixth of domestic routes in a bid to cut costs, after record fuel costs pushed the company to a quarterly loss of $2.73 billion (£1.36 billion) compared with a profit of $274 million compared with the same period the year before.

Just last week, Australia’s flagship carrier, Qantas Airways, confirmed it is slashing 1,500 jobs as it battles with rocketing fuel costs.

Budget airline, Ryanair, is to cut around 250 flights from London’s Stansted airport as it also battles with rising fuel costs and airport fees.

US carriers including ATA Airlines, Aloha Airgroup and Skybus Airlines all ceased trading in March, while EOS and Maxjet revealed they would cease flying in May.

In a statement, easyJet said the current environment is challenging and it is crucial that we continue to review our schedule and increase efficiency.

However, despite the bad news, easyJet’s total passenger numbers have continued to surge with strong growth noted at London’s Gatwick airport and on routes to France, Italy and Spain.

In easyJet’s third quarter, total revenue soared 32% and passenger numbers increased 16%.

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