EasyJet puts pressure on Ryanair

EASYJET was last month within a whisker of reclaiming its crown as the king of Europe's low-cost airlines after a 25% increase in September passenger numbers.

The Luton-based budget carrier reported that it carried 2.35m passengers during the month, 18,000 short of the number carried by arch-rival Ryanair, which reported slower growth of 17%. Both airlines flew around 87% full.

'September was a solid month,' said easyJet chief executive Ray Webster, who pointed to a better performance after tweaking the airline's network during the summer.

In a swipe at Ryanair whose previous stellar profit performance is coming under increasing pressure, Webster added: 'Pre-tax profit for the year is expected to exceed £60m, at least 16% higher than 2003, making easyJet one of the few European airlines to record an increase in profits this year.'

Shares in easyJet have been under pressure since two profit warnings in the spring after news that Europe's budget airlines are set for a fierce price war this winter. They were today 1 3/4p higher 128p, up from their recent all-time low.

Analysts warn that Stansted-based carrier Ryanair is completely unhedged against the oil price, which hit new highs again today. Ryanair shares slipped four euro cents to a new a three-year low of €3.80.

Goldman Sachs yesterday slashed its forecasts for European airlines in a report saying: 'Get out quick to avoid the oil slick.'