Passenger volume slows for Easyjet

No frills carrier Easyjet has announced lower than expected passenger numbers, prompting speculation of a downturn in demand for budget flights.

New data from the carrier showed that on average 78.9 per cent of the seats on its peak period December flights were booked up.

This represents a fall of 2.2 percent year on year, Easyjet said.

Meanwhile, its growth figure for passenger volumes was up by 9.9 per cent - well below analysts' expectations of around 13 per cent.

Commenting on the results transport analyst Andrew Fitche of stockbroker Collins Stewart told the Scotsman: "We remain nervous there will be dilution in ticket yields. This has to be a natural consequence of supply increasing so much in a weakening economic environment."

Budget airlines are also expected to be hit hard by rising oil prices, which have passed the $100-per barrel mark recently for the first time.

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