easyJet dives as fuel costs soar.

Investors Chronicle - magazine and web content, March, 2008

IN BRIEF: Shares hit turbulence after airline warns that revenue growth won't offset dearer fuel. Stephen Gunnion

Shares in easyJet fell as much as 17 per cent after the budget airline warned that rising fuel prices could add GBP45m to its fuel bill in the second half of the year. City analysts are also concerned that an economic slowdown could add to the airline's troubles, as reduced discretionary spending leads to fewer passengers.

That's not happened so far. EasyJet says passenger numbers continue to improve, with Easter trading on track. And, 27 per cent of the airline's summer seats are already sold, ahead of this time last year.

However, easyJet says the price of jet fuel has reached unprecedented levels. At the time of February's...