Easyjet announces 20 million in cost savings

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Easyjet announces 20 million in cost savings

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Europe’s second-largest low-cost carrier Easyjet is celebrating the start of regular flights into Southend. The company has largely built the airport and is promoting it as London’s fourth.

The low-cost segment of the aviation market is booming but challenges remain. Easyjet says cost-cutting has narrowed a forecast first-half loss, and it increased its revenue per seat by 10%.

It is not the only low-cost airline feeling the effects of competition from some majors entering their own low-cost variants into the fray, and soaring fuel prices.

The boosters insist nothing will stop growth in cheap passenger travel, and point to the fact that the low-cost crew are able to leap into gaps in the market created by companies going bust like Maleev, the Hungarian carrier, or Spanair.

Easyjet shares gained 7.5% on the news, their highest level for nearly two years.