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EasyJet pulls back on growth numbers

Budget airline EasyJet has today announced a halving of its forecast growth rate from 15% to 7.5% with founder Sir Stelios Haji-loannou said to have been a prominent figure behind the scenes. It seems as though the founder, who still controls 38% of the airline shares, had become very concerned about over expansion in a recessionary period.

While there is no doubt that the original 15% growth in passenger numbers was very optimistic there were concerns that passenger growth may well have taken precedence over the financial stability and future profitability of the group. When you consider the likes of Ryanair and British Airways are struggling with their cost bases it seemed inconceivable that EasyJet would be able to continue its impressive growth path.

The airline industry has been one of the more difficult industries to follow due to a concerted and significant reduction in passenger numbers. Indeed only yesterday we saw British Airways announce plans to cut back on free food on flights under two hours in length which will save the group around £22 million year. It is easy to take for granted the various "freebies" associated with premium and budget airline travel but there are significant savings to be made and difficult decisions to be taken.

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