Since autumn 2015 easyJet has been running a UK TV advertisement celebrating its first 20 years. Ending with the line "Europe still from £29.99", it echoes the LCC's debut advertisement in 1995 offering GBP29 tickets from London Luton to Edinburgh or Glasgow, "the same as a pair of jeans". It is a powerful testament to easyJet's business model that 20 years on it can still offer GBP29 tickets. Moreover, it has become one of Europe's most profitable airlines.
The ad throws the spotlight on the development of easyJet's average prices (total revenue per passenger) since the 1990s and their divergence from Ryanair's average prices since that period. Both LCCs had a major impact on legacy airlines in the late 1990s/early 2000s, when BA's UK/Europe network suffered a heavy fall in average revenue per passenger, and then after the global financial crisis, since when prices on the Lufthansa Group's Europe network have not recovered.
For several years easyJet's discount from Lufthansa has been narrowing, while Ryanair's discount from easyJet has been widening. With both LCCs now aiming at similar strategic territory, easyJet seems to face the bigger challenge in growing its revenue per seat.
To access CAPA Premium Analysis you need a CAPA Membership
Your window into the latest insights
CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.
Big picture strategic view
Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.
The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.
Customise your Alerts
CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.
I'm very impressed by the factual and detailed analysis CAPA is always doing.- CEO, Airline Member
Phone: +61 2 9241 3200 | Email: email@example.com