EasyJet’s shares fell on Tuesday after it said demand for travel was dampened by security fears in the later part of last year following the terrorist attacks in Paris and the October plane crash over Egypt .
In the final three months of last year it reported a 3.7 percent fall in revenue per seat.
However bookings for the early part of this year have shown a marked improvement.
As well as that recovery in bookings, the British low-cost airline is also seeing better than planned results in reducing its running costs and said it is on track to meet annual profit forecasts, helped by lower fuel bills.
For its full financial year to Sept. 30, easyJet said that it expected to meet market forecasts for pretax profit of 738 million pounds (972 million euros).
Rival Ryanair has talked of a price war in Europe as airlines raise capacity and compete against each other in a low oil price environment, but there is limited direct competition between the pair.