British no-frills airline Easyjet on Monday revised its previous loss expectations for the past six months to the end of March. The low-cost carrier said in a statement that it reckoned with only 110 to 120 million pounds $174 to $190 million (132 to 144 million euros) in pre-tax losses, down from a previously expected shortfall of 140 to 160 million pounds for the first half of the 2011-12 financial year.

Easyjet, which is based at Luton airport north of London, maintained that cost controls and better marketing had helped it through tough times.

Since the start of 2011, a number of rival carriers have had to cease operations, losing their fight against a toxic mix of high fuel prices and sluggish demand during the winter season.

Among the victims were loss-making Spanair of Spain and Hungarian flag-carrier Malev. They left gaps in the market that low-budget airlines, such as Easyjet, were quick to exploit.

Thriving on the demise of others

"In a difficult environment for all airlines, improvements in revenue management combined with marketing and website initiatives have enabled Easyjet to take advantage as weaker competitors have left the market," Easyjet Chief Executive Carolyn McCall said in a statement in London.

McCall acknowledged, however, that the operating environment for airlines would continue to be difficult. She noted that the company would continue to focus on cost control and improvements in ground handling.

"We are impressed with Easyjet's operational and financial performance in a difficult market environment," said Wyn Ellis, an analyst with Numis Securities. "It's emerging as a very clear winner in the aviation market in Europe."

The positive outlook for the company and the prospect of pre-tax losses substantially narrowing helped Easyjet shares gain almost eight percent in early trading on Monday.

hg / gb (AFP, Reuters)