Shares in Europe's budget airlines fell sharply today after British airline EasyJet said its fares fell by 6% in the four months to the end of January.
EasyJet said the decline in fares for the six months to the end of March would be roughly in line with rivals such as Ryanair, whose fares for the final quarter of 2002 were 8% lower than the same period in 2001.
Analysts said the size of the fall in EasyJet's yields was a surprise, and the shares closed down 12% to just under £2.13 in London this afternoon. Ryanair shares fell 30 cent to €6.20 in Dublin.
EasyJet blamed the growth in aircraft seat capacity, seat sales to boost its Go network and economic forces for the lower fares.
Analysts see the EasyJet figures as a sign of the uncertainty facing the airline industry, including war fears, higher oil prices, security scares and economic uncertainty.
* Ryanair is launching a new route from Glasgow Prestwick to Barcelona Girona starting on May 22.
