UPDATE 1-EasyJet CEO sees tough environment in 2009

Thu Oct 9, 2008 5:51am EDT
 
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(Adds comments from CEO and share price)

BERLIN, Oct 9 (Reuters) - British low-cost airline easyJet Plc (EZJ.L) expects the industry to face a "very tough" consumer environment next year, Chief Executive Andy Harrison said on Thursday.

Carriers will face higher fuel costs as the U.S. dollar strengthens against the euro and airlines which do not hold enough cash to foot the bill "will not survive," he said.

"The world is gloomy out there," Harrison told journalists at a press briefing.

Nonetheless, easyJet had no plans to cancel orders for new planes it has placed with Airbus (EAD.PA), he said. The company still aimed to grow and increase its number of planes to 200 by 2011.

In the upcoming winter season, Harrison said he expected airlines to cut the number of seats they sell by 8 to 10 percent, though that figure could rise as more airlines go out of business.

EasyJet would keep its capacity stable from the year-earlier period, Harrison said. The load factor, or the average percentage of seats filled on each flight, in coming months would be "very similar" to last year, he said.

EasyJet shares were up 2.7 percent at 311 pence by 0941 GMT. (Reporting by Maria Sheahan; Editing by David Holmes)

 

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