No-frills airline easyJet carried 2.24 million passengers during June, a 28 per cent increase on last year, it said yesterday.

The improvement, partly due to five new routes from Gatwick, came amid a tough market for discount airlines.

Last month, Luton-based easyJet saw its share price tumble after warning its profits had been affected by unprofitable and unrealistic pricing and high oil prices.

EasyJet said the percentage of available passenger seats being taken was 86 per cent in June, the same figure as a year earlier but slightly ahead of the 84 per cent for the last 12 months.

For the year to the end of June, easyJet said it carried 22.9 million passengers and generated revenues of £1.03 billion, a 21 per cent improvement on figures a year earlier.

Chief executive Ray Webster said: "These figures are in line with our statement in June. We continue to capitalise on our market and financial strengths."

He added the airline had been boosted by the launch of services to Cologne in Germany and the announcement that it would base a further three new aircraft at Berlin, bringing the total in the city to nine.

A month before the June profits warning, easyJet shares sank nearly 22 per cent after the airline said its full-year figures could fall short of expectations.

Fellow budget airline Ryanair also blamed competition, the Iraq war, a weaker pound, higher oil prices and the threat of terrorist attacks for the first fall in net profits since it floated.

Despite the tough market, easyJet has pledged to continue to expand its network, as well as maintain its market leading position and maximise cost efficiency through economies of scale.

Thursday July 08, 2004