LONDON (Reuters) - British budget airline easyJet (L:EZJ) said first-half seasonal losses would shrink this year after it added seats on successful routes and attracted more business passengers.
Europe's second-largest budget airline by passenger numbers after Ryanair (I:RYA) said it expected first-half losses of between 10 million and 30 million pounds ($15-45 million), compared with a loss of 53 million pounds last year.
"We further strengthened our network in the quarter adding around 500,000 seats, the majority of which are from airports where easyJet has a number one or number two position," Chief Executive Carolyn McCall said.
"This, combined with our new TV ads aimed at business travellers, enabled easyJet to sell record numbers of seats to business travellers in the first quarter."
Analysts at Jefferies said the airline's first-half earnings guidance was better than expected.
The company, which like other airlines and holiday companies tends to make a loss over the winter season when fewer customers fly, posted revenue in the quarter to Dec. 31 of 931 million pounds, up 3.8 percent.
It faces increased competition since Ryanair moved to attract more business travellers through new routes, additional capacity and by making improvements to its customer service.
Ryanair shares hit an all-time high this month after passenger numbers surged, building on strong momentum in December, when it raised its profit forecast for the second time in a month.
