Easyjet to expand the holiday business, as it reduces the loss

Easyjet plans to expand its holiday business and create new loyalty scheme as it aims for a 30% jump in profits this year.

Airlines, particularly after the collapse of rivals such as monarch and Alitalia last year – made a rare operating profit in the traditionally loss-making autumn and winter months. His figure of 8 million pounds does not include the heavy losses in its new operations to Berlin-Tegel purchased from air Berlin in January.

But even taking a shot at Berlin Tegel in the account, the loss before tax down from £236m in the first half of last year to $ 68m in the same period this year. Much of the improvement before the collapse of rivals, which has allowed tariffs to rise by about 5%.

Easyjet has transported nearly 37 million passengers, 3 million last year, with total revenue of almost 20% to £2.2 billion. Airlines said the large revenue increase was largely baggage fees, fuller planes through its network and Easter time.

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Chief Executive Johan Lundgren said easyjet holidays will look to increase its market share, which was in a small part of its potential. He said, “We have 500 000 clients who book hotels near us, but 20 million of our customers flying with us and booking a hotel in another place.”

Easyjet holidays is run by a third party, with easyjet to obtain a share of the revenues. But under the New CEO Harry Wilson, former colleague Lundgren in the TUI, the airline will now sign contracts directly with the hotels. Lundgren said it should mean cheaper, more flexible than the competitor, holiday company, whose planes fly to destinations once or twice a week.

He added that the airline is introducing a new loyalty program next year. He refused to give details, but said that it would be “more accessible and convenient than the current scheme”. He denied that the tariffs must rise as a whole this summer, despite less power in the market: “they do not have above: you will see the rates coming down in some places. We must be sure that we are competitive prices.”

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Airline easyjet said that its annual profit is likely to be between £530 million and £580m, a third higher than 2016-17. The company’s shares rose 3 percent to $ 17.38. In early 2017, they pass from hand to hand for just £10.

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