EasyJet Sees Better First Half, Shares Rise

Britain’s easyJet said last week first-half revenues were likely to come in better than expected partly due to a rise in business passenger numbers, sending its shares higher.

Chief Executive Andy Harrison said he expected revenue growth per passenger to climb at a mid-single digit percentage rate over the six months to end March, up from earlier forecasts of low single digits.

The news contrasted sharply with recent statements from rival European airlines. Air France-KLM, Europe’s biggest airline, said late on Wednesday it would make an operating loss of 200 million euros ($259.8 million) in its third quarter due to the worsening economy –its second profit warning in three months.

Harrison said easyJet had taken 10 percent of summer bookings to date, in line with this time last year and at similar prices. But he warned it was too early to say what the end result for the crucial period would be due to the economic climate and sharp falls in the value of the pound.

EasyJet posted revenues up 32 percent at £550 million ($762.6 million) in the three months to end December. EasyJet plans to have 197 aircraft by September 2011, up from 165 last September, due to a longstanding order with Airbus.