Fuel cost alert from easyJet

THE boss of budget airline easyJet has today warned that the rising cost of fuel will put some of its smaller rivals out of business.

Andy Harrison, the airline's chief executive, said the cost of jet fuel has surged ahead by 35 per cent in the last three months and 80 per cent over the last year.

He said nobody knows yet knows whether the price of oil will see a longer term sustainable increase.

"If these fuel increases are maintained many of our weaker competitors will disappear or downsize and easyJet will emerge even stronger reflecting the combination of our business model, our cost advantage, our new fuel efficient fleet and the strength of our network," he said.

The firm's reported underlying pre-tax losses of £41.4 million in the six months to March 31.