EasyJet says drop in airfares will accelerate

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/>