EasyJet confirmed on Tuesday the launch of its
first-ever flexible fares, intended to increase its appeal to business travelers.
BTN revealed in August that the
budget carrier was poised to launch the new fare types, originally scheduled
for September.
EasyJet also revealed the results of a strategic
review, which confirmed that it will target the corporate market in an attempt
to push up its profit margin to £5 per passenger. The airline also announced its
annual results for the year ending Sept. 30, which showed that profit per
passenger rose during the past 12 months to £3.36 from £2.53. In a presentation
to analysts, EasyJet indicated that business passengers deliver a yield premium
of 20 percent. The airline claimed to have a 4 percent share of the European
short-haul business travel market and said it would particularly target
corporate business in France, Switzerland and the United Kingdom.
The flexible fares initially will be available
only through business booking channels, including global distribution systems and
self-booking tools; EasyJet said it would make them available through its
website "at a later date." Flexible-fare passengers can change their
flight up to two hours before departure and rearrange their flights for any
time between one week before and three weeks after the original date of
departure. The premium fare also includes priority boarding—useful because EasyJet
passengers are not assigned specific seats—one free checked bag and a waiver on
booking fees.
No one from EasyJet was available to comment on
the price of the flexible fares, but according to a statement, "they will
be competitively priced and are expected to be far cheaper than those offered
by the legacy carriers."
Mark Cuschieri, chairman of the United Kingdom
and Ireland's Institute of Travel & Meetings industry affairs working
party, told BTN, "We support the
move by any supplier to provide greater flexibility and services for the business
traveler and to do so through recognized travel management channels like the
GDS."
Pre-tax profits for EasyJet almost tripled from to
£154 million from £55 million, despite £27 million in costs incurred from the
volcanic ash crisis. Passenger revenue per seat increased 5.3 percent and
ancillary revenue—including checked bags, fees and partner revenues—climbed 4.4
percent per seat. EasyJet also announced plans to add by 2013 another 20
aircraft to its 200-strong fleet.