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EasyJet said a decline in ticket prices is accelerating amid a fare war prompted by overcapacity across the European airline industry. The airline said Tuesday that revenue per seat will drop by mid-to-high single digit percentage points in the fiscal Q2 through March, at constant currencies. That’s after a 4.2% drop in the Q1. Demand remains strong, with Q1 revenue up 14%, aided by a jump in spending on add-ons such as pre-booked seats, while forward sales are “robust” despite uncertainty around Brexit. But fares are taking a pummelling, especially in Berlin, where a base opened after the collapse of Air Berlin will post a loss in 2019. Ryanair set the tone last week with a second profit warning in 3 1/2 months as winter fares fell 3 times faster than predicted. <br/>

EasyJet remains upbeat on the effect of Brexit despite the ongoing lack of clarity on the terms of the country’s exit from the EU in less than 70 days. In a call with analysts, EasyJet executives characterised the airline as “very well prepared” for Brexit and likely “better prepared than anyone else that is out there,” according to EasyJet CE Johan Lundgren. The airline, which has registered 130 aircraft on its Austrian AOC, pledged it has made “good progress” in ensuring access to a spare parts pool in the EU27 and in transferring crew licenses, both of which it expects to complete by March 29. To comply with EU rules, EasyJet has increased its EU/European Economic Area shareholdings (excluding the UK) to around 49%. That brings it close to the 50.1% threshold it needs for recognition by the EU. <br/>

EasyJet has put the cost of the London Gatwick drone disruption at around GBP10m (US$13m), although overall flight cancellations for the airline fell in Q1. London Gatwick was closed for more than a day during December following the sighting of drones in the vicinity, with a substantial impact on EasyJet, which has its largest base at the airport. EasyJet says the incident affected around 82,000 passengers and over 400 cancelled flights. In its Q1 figures, for the 3 months ending Dec 31, it puts the revenue impact at GBP5m. But EasyJet adds that the cost of the drone situation, which includes customer welfare expenses, amounted to GBP10m. “There has been a one-off cost impact from this incident but underlying cost progress is in line with expectations,” says CE Johan Lundgren. <br/>

Spirit Airlines is targeting a decision by the middle of the year on its next order of single-aisle jets as the carrier prepares its expansion plans over the next 5 years. The airline is talking to each of the major manufacturers, Airbus, Boeing. and Embraer, CFO Scott Haralson said Tuesday. The order size will depend on pricing, though the carrier is trying to secure enough aircraft to tide it over at least through 2022. Spirit has been expanding its network connecting smaller and midsize cities to popular tourist destinations. The airline already has plans to expand its fleet of Airbus A320-family planes to 177 by the end of 2021. Haralson said the airline was weighing the viability of adding a new aircraft type with a different cockpit design to the fleet, despite the increased operational complexity. <br/>

Electronic cigarette batteries have caused another baggage fire involving a Canadian airliner, news that comes days after Canadian investigators determined that similar batteries caused an inflight fire in 2018. The latest fire involved Air Transat flight 443, on an Airbus A321 operating from Cancun to Vancouver Jan 12. During the baggage loading process in Cancun, "brown smoke could be seen coming" from one piece of luggage, according to a preliminary aviation incident report released by the TSB of Canada. The fire burned through the luggage, it adds. "The suitcase was taken away from the gate area and sprayed with a portable fire extinguisher," says the report. "It was determined that the fire and smoke was caused by electronic cigarette batteries that were overheating." <br/>

Indonesian authorities do not plan to provide a public update on the contents of a cockpit voice recorder from a Lion Air jet that crashed, killing 189 people, until a final report is released in August or September, an official said Tuesday. The Oct 29 crash was the world's first of a Boeing 737 MAX jet and the deadliest of 2018. The contents of the jet's second black box, which were recovered from the Java Sea north of the capital, Jakarta, Jan 14, could provide a detailed account of the last actions of the pilots. The recording needs to be filtered first due to "background sounds" hindering the transcription, said the chief of the transportation safety committee. Under international rules, a final crash report is due within 12 months if that is possible. <br/>

Alaska Airlines has postponed by 3 weeks its plan to begin service from a new terminal at Paine Field north of Seattle, Washington state, because FAA employees responsible for approving the service are furloughed by the ongoing US govt shutdown. Plans call for Alaska Air Group sister carrier Horizon Air to operate 18 daily nonstop flights between the airport and 8 West Coast cities, using Embraer E175 regional jets. The operation will initiate scheduled commercial service from PAE, which also is home to Boeing’s Everett widebody manufacturing plant. While an environmental assessment by the agency continues, FAA certification and oversight personnel needed to grant final govt approvals of the service from a new 30,000-sq-ft. terminal building are not available, Alaska Airlines said. <br/>