Tuesday, 8 January 2008

Flying on a Budget

Budget airline passengers are paying more than the price advertised because of extra costs, a Which? survey claims.
Firms are charging extra fees for items such as luggage check-in adding as much as £28 to ticket prices, Which? found.
Ryanair said charges were discretionary and largely avoidable, while Easyjet said the consumer group misunderstood the business model of budget airlines.
Ryanair reported passenger numbers up 18% in December on a year ago, while rival Easyjet saw numbers climb 9.9%.
However, shares in Easyjet were trading 13% lower in late afternoon trade at 466p after its load factor - which denotes the number of seats sold as a proportion of total seats available - fell to 78.9% in December, down from 81.2% a year earlier.
Ryanair shares dropped 5% to 3.88 euros. Its latest update, released on Friday, had shown its load factor dropping to 79% in December from 81% the year before.

No comments: