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EasyJet traffic soars
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November 7, 2001: 9:18 a.m. ET
Budget airline posts profits as Sabena goes bust
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LONDON (CNN) - European airline easyJet has said it enjoyed a 33 percent rise in passenger traffic last month as it continues to post profits in the wake of an economic slowdown.
The announcement on Wednesday comes as Belgium's flag carrier Sabena filed for bankruptcy, highlighting the growing gulf in fortunes between the no-frills and mainstream airlines.
EasyJet, chaired by high-profile entrepreneur Stelios Haji-Ioannou, said it carried 716,017 passengers in October, up from 538,508 passengers a year ago.
Average seat sales fell to 82.2 percent of capacity from 85.4 percent in October last year, but easyJet shares still edged higher in morning trade.
EasyJet and Ryanair, Europe's biggest budget carrier, dramatically slashed fares on European routes to get travellers back into the sky after the September 11 attacks on the U.S..
The strategy has so far worked, with both budget airlines reporting steadily increasing passenger numbers and continuing to win market share from their struggling mainstream rivals.
EasyJet's stock was up one percent by 1105 GMT on Wednesday -- its highest since the U.S. attacks, which ruined the fortunes of many better-known brands in the airline industry.
In the last two weeks, easyJet and Ryanair have beat market forecasts, whereas British Airways posted a 73 percent slump in second-quarter operating profits on Tuesday.
EasyJet has expanded rapidly since it was founded in 1995 and plans to add to its current European network, where it operates more than 30 routes with hubs at London Luton, Geneva and Amsterdam airports.
Analysts have upgraded their recommendations on easyJet and the airline cashed in on investor confidence last week by announcing that a share sale would raise £93 million ($136 million) to fund further European expansion.
In sharp contrast, British Airways and Virgin have been slashing routes and jobs and grounding planes in an effort to reduce their costs.
EasyJet has outperformed the FTSE transport sector by nearly 60 percent since the start of 2001. 
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