easyJetLow-cost airline easyJet has reported a surge in winter revenues after it increased baggage charges and bounced back from the previous year's snow-hit performance.

The group, which operates more than 580 routes across 30 countries, said total revenues were up 16.7% to £763 million in the three months to December 31, as it raised its first-bag charge by 16.9% to £4.70 per seat. Total fees and charges increased by 26.7% to £5.88 per seat.

The figures were also flattered by the weak performance in the same period in 2010, which was hit by extreme weather, grounding flights and costing the group £18 million.

The absence of snow disruption in the period meant easyJet was able to keep its costs down, reducing cost per seat excluding fuel by 1.6%, while it also took advantage of retrenching competitors, which cut capacity in the face of higher costs.

Shares in easyJet increased more than 9% after the update.
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The carrier said it now expects to recover most of the £100 million increase in its first-half fuel bill, meaning interim losses will be contained between £140 million and £160 million. This compares to a loss of £153 million a year earlier.

Wyn Ellis, an analyst at brokers Numis, upgraded his full year pre-tax profit forecast from £193 million to £225 million, compared to £248 million the previous year.

The Luton-based group, which has a 200-strong fleet of aircraft, said passenger numbers were up 8.1% to 12.9 million in the period, while total revenues per seat were up 9.2% to £51.83.

Chief executive Carolyn McCall said: "easyJet has made a strong start to the year. This is due to firm control of costs, the strength of easyJet's network, tight capacity discipline and pricing actions taken in the second half of the last financial year."

EasyJet added that non-seat revenue declined marginally as a strong performance of in-flight sales, which includes duty-free purchases, was offset by a drop in the travel insurance market. The carrier reported a slight increase in business passengers, up 200,000 to 2.3 million in the period, despite a wider decline in the corporate travel market.