easyJet CEO Carolyn McCall stated the carrier will trial a new initiative across three Scottish airports to help attract more business travellers (Business Traveller/ABTN, 11-Apr-2011). The trial will commence following a recent pilot scheme where fast-track security became a permanent fixture at Edinburgh and Aberdeen airports for passengers who purchase speedy boarding or hold an easyJet plus card. It will also come as standard for anyone who books through a travel management company (TMC). The trial will also be introduced at Glasgow Airport during Apr-2011. The carrier stated services between Scotland and London "boast some of the highest percentages of business travellers across our entire network". easyJet also plans to improve flight times on the Glasgow to London Gatwick service from 06-Jun-2011 to include an early morning option for those travelling to London. Additionally a fourth daily service between Glasgow and Gatwick will be available from winter 2011.
easyJet trials new incentives for business travellers on Scottish routes
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The strongly seasonal nature of Jet2.com's schedule and the financial performance of the airline and its parent Dart Group were examined in a Jul-2016 analysis report by CAPA. That report also noted that all of the increase in passenger numbers since the year to Mar-2013 was attributable to traffic booked via Dart Group's package holidays business – Jet2holidays.com.
This report looks in some detail at Jet2.com's network and how it has changed in the three years since summer 2013.
Over the past three years Jet2.com has increased its peak summer weekly seat capacity by one third. By airport, the biggest share of this incremental capacity has been at Manchester. By destination, the lion's share of its growth has been to Spain, where there is now a capacity glut. Its markets have become increasingly competitive – not only due to other LCCs, but also because of the growth of airlines owned by integrated leisure groups such as TUI and Thomas Cook.
Ryanair, easyJet, Norwegian, Wizz Air, Pegasus Airlines: Europe's top LCCs' collective margin drops
CAPA's previous analysis of the 3Q2016 results of Europe's big three legacy airline groups highlighted a fall in their collective operating margin, after growth in 1H2016. This report shows that Europe's five leading LCCs, in aggregate, also suffered a fall in profit and margin in the quarter.
Three of the five – Ryanair, Norwegian and Wizz Air – improved their profit margin in the quarter, but easyJet's drop in margin was heavy enough to bring down the collective result. Pegasus' margin also declined.
Nevertheless, the LCC five remain collectively far more profitable than the legacy three. Moreover Europe's two most profitable airlines, Ryanair and Wizz Air, look set to increase their margin lead this year. Even easyJet, which has had a bad year by its standards, achieved a higher margin for calendar 9M2016 than the most profitable of the big three legacy groups, which was IAG.
The divergence of results in the European sector suggest that not all airlines are following the same cycle. However the collective margin decline for the continent's leading LCCs, and its major legacy airline groups, at least gives reason to question whether or not the cyclical upswing may have run its course.