INTERVIEW-UPDATE 1-EasyJet says worst over but 2010 to be slow

Quotes

   

Thu Nov 26, 2009 12:14pm GMT

* CEO sees no big improvement in demand in 2010

* Launches 100 pct online check-in

* Shares down 2.9 pct

(adds quotes, background on trading, share price)

By Rhys Jones

LONDON, Nov 26 (Reuters) - The Chief Executive of low-cost airline easyJet (EZJ.L) believes the worst of the recession is over for the airline industry but warned recovery would be slow.

"I think the worst is over but I don't see any improvement either and expect demand to be stable for the next nine months at least," Chief Executive Andy Harrison told Reuters in an interview on Thursday.

"Winter will be a continuation of what we have seen...we will see continuing weaker consumer demand."

The airline last week reported a 65 percent fall in full-year profit, its worst annual performance since 2001, after it hedged fuel prices at high levels. [nLH072422]

Passenger numbers rose 3.4 percent to 45.2 million, its slowest growth rate since the airline listed on the London Stock Exchange in November 2000, and analysts cautioned that the turning point in sector demand might be some way off.

Harrison said the airline, which uses Airbus (EAD.PA) aircraft, would not look to cancel any of its existing aircraft orders, despite the sluggish demand picture.

"We have got something like 70 new committed aircraft deliveries over the next three years and they will go ahead," he said.

EasyJet, which is the biggest carrier at London's Gatwick airport, has also launched online check-in to passengers with hold baggage. Previously only passengers travelling with hand baggage were able to check-in online.

The global recession has battered the airline industry as consumers cut back on trips and the International Air Transport Association last week repeated its forecast that airlines would lose a collective $11 billion this year, despite year-on-year ticket sales growing in September. [nLH588718]

Shares in easyJet, which have risen 14 percent in the last three months, were down 2.9 percent at 368.7 pence by 1142 GMT, valuing the group at close to 1.6 billion pounds.

(Editing by Paul Hoskins and Elaine Hardcastle)

((rhysl.jones@thomsonreuters.com; +44 207 542 4166; Reuters Messaging: rhysl.jones.reuters.com@reuters.net;)) Keywords: EASYJET/

(C) Reuters 2009. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nGEE5AP19J

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.