EasyJet confirmed the launch of its first-ever flexible fares, intended to increase its appeal to business travelers. BTNrevealed 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 The Transnational, "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.
Source: Business Travel News