Shares in no-frills airline easyJet went into a tailspin yesterday after it warned that tough competition could affect its traditionally strong summer and autumn season.
The group runs flights from Gatwick and serves 21 European destinations, including Barcelona, Edinburgh and Milan.
Its stock fell almost 22 per cent, or 62.75p, to 229.5p after it said it was adopting a "cautious" approach to its expected performance for the full year.
The comments represent a marked change from easyJet's stance in February, when it said it was "cautiously optimistic" about 2003/4.
Announcing interim results to March 31, easyJet said it faced an increasingly competitive market, with "unprofitable and unrealistic" pricing by airlines across all sectors in Europe.
It said demand in the first half of April met expectations but had softened in the second half due to continued pressure from rivals and a weaker-than-expected Easter.
Passenger numbers grew 14 per cent to 1,947,675 in April against the previous year. Passenger numbers in May were slightly lower than expected.
Thursday May 06, 2004
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