EasyJet to review bag policy after check-in revenue falls
Thursday, January 20, 2011
Chris Gray
EasyJet is reviewing its baggage policy after a fall in the number of customers checking in luggage hit its ancillary revenue.
Do you want to see easyJet change its baggage policy? And if so, how? Let us know by emailing ttgletters@ttglive.com or commenting at the end of this story.
The airline reported that its revenues from extras, including checked-in baggage charges, had fallen by 2.7% year-on-year as fewer people had opted to pay the charge to check in a bag.
It is now running trials of new baggage regimes that TTG understands will look at more strictly enforcing the size rules governing what bags can be taken onto the cabin.
The trials are intended to find ways of protecting easyJet’s ancillary revenue and stopping passengers avoiding check-in charges by taking large bags into the cabin, leading to delays when overhead cabins become full and luggage then has to be moved to the hold.
The issue is believed to be a particular problem in Spain and Italy, but the policy review also affects the UK.
One trial in Milan is testing allowing passengers to take two bags into the cabin but rigorously enforcing the size limits.
The review was revealed in a trading update issued today when easyJet warned its losses for the first half of the year could double on the back of rising fuel prices.
The airline said losses for the October to March period could reach £140m to £160m, compared with £78.7m for the same period in 2009/10 when fuel costs were about £1.17 a seat lower.
It predicted half-year losses would include an £18m hit from severe weather in the last quarter of 2010 and another £6m from air traffic control strikes in Europe.
The strikes set back easyJet’s efforts to improve punctuality after problems in the summer, and only 65% of its flights arrived within 15 minutes of the scheduled time during the quarter.
However, the airline said total revenue in the three months to the end of December 2010 rose 7.5% to £654m, and passenger numbers rose 8.8% to 11.9m. Average load factor also increased by 0.9 percentage points to 88.7%.
It also said it had gained market share across Europe, particularly at Gatwick, Paris Orly and Charles de Gaulle, and Geneva.
Some 59% of easyJet’s passengers now originate from outside the UK.
TTGlive
Thursday, January 20, 2011
Chris Gray
EasyJet is reviewing its baggage policy after a fall in the number of customers checking in luggage hit its ancillary revenue.
Do you want to see easyJet change its baggage policy? And if so, how? Let us know by emailing ttgletters@ttglive.com or commenting at the end of this story.
The airline reported that its revenues from extras, including checked-in baggage charges, had fallen by 2.7% year-on-year as fewer people had opted to pay the charge to check in a bag.
It is now running trials of new baggage regimes that TTG understands will look at more strictly enforcing the size rules governing what bags can be taken onto the cabin.
The trials are intended to find ways of protecting easyJet’s ancillary revenue and stopping passengers avoiding check-in charges by taking large bags into the cabin, leading to delays when overhead cabins become full and luggage then has to be moved to the hold.
The issue is believed to be a particular problem in Spain and Italy, but the policy review also affects the UK.
One trial in Milan is testing allowing passengers to take two bags into the cabin but rigorously enforcing the size limits.
The review was revealed in a trading update issued today when easyJet warned its losses for the first half of the year could double on the back of rising fuel prices.
The airline said losses for the October to March period could reach £140m to £160m, compared with £78.7m for the same period in 2009/10 when fuel costs were about £1.17 a seat lower.
It predicted half-year losses would include an £18m hit from severe weather in the last quarter of 2010 and another £6m from air traffic control strikes in Europe.
The strikes set back easyJet’s efforts to improve punctuality after problems in the summer, and only 65% of its flights arrived within 15 minutes of the scheduled time during the quarter.
However, the airline said total revenue in the three months to the end of December 2010 rose 7.5% to £654m, and passenger numbers rose 8.8% to 11.9m. Average load factor also increased by 0.9 percentage points to 88.7%.
It also said it had gained market share across Europe, particularly at Gatwick, Paris Orly and Charles de Gaulle, and Geneva.
Some 59% of easyJet’s passengers now originate from outside the UK.
TTGlive