EasyJet - Rise in Profits

Allocated Seating proves cutting edge

 

It may seem bizarre but EasyJet has only just decided to award seat allocation on tariffs in an attempt to bring in more customers. The firm say that they are trying to break away from the chasing group of aviation firms such as RyanAir and want to establish themselves as the Head of affordable travel in Europe going head-to-head with the likes of AirItalia and British Airways. EasyJet saw a 51% rise in yearly pre-tax profits to £478m, partly thanks to the introduction of allocated seating. This new service is predicted to be a hit with older customers and families who would benefit more from the calmer boarding process.

 

Over the past year EasyJet has seen its share price rise 96%, compared with a 20% average rise for the FTSE 100 with shareholders now receiving a £308m windfall. Profits per seat are up by 48% from £4.81 a seat in 2012 to £7.03 in the last year. Bookings for the first half of the year were flat on a year earlier, but it still expects to increase passenger numbers over the year ahead with seats flown forecast to rise by around 3.5% in the first half and 5% in the full year.

 

Allocated seating should be made mandatory as not only a health and safety precaution but also as a way of relieving the stress of boarding on passengers. The checking for passports several hundred times in an hour, the countless walks round the airport in an effort to kill time, the constant watch of luggage usually forced upon one family member and the hurried walk to the terminal even though you're no-where near late.