Although the airline's losses are widening, it understands that other carriers will abandon some routes because of high fuel costs--and EasyJet is ready to swoop in and initiate service on those new routes. However, the airline also says it will reduce short-haul flights if proposed emissions taxes are introduced.
The company hedged its fuel prices some time ago, which gives it some relief from the punishingly high fuel prices of recent weeks.
Keeping costs in line is essential for a return to profitability. Meanwhile, Easyjet is cost-effectively reaching out to customers via its Web site, its Facebook page (54,000 likes) and Twitter. On the other hand, it's also raising fees to improve its revenue position, which could backfire if customers rebel.
EasyJet has successfully increased its customer base, especially on flights that originate outside the UK, and expects to continue its growth by targeting business passengers. Already, half of the available seats on summer flights have been sold, a good start for the airline during the peak travel season. Yet if fuel costs continue to skyrocket, EasyJet may not return to profitability for quite some time.
