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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/01/fuel-cost-fears-hit-easyjet-shares.jpg"><img class="alignnone size-full" title="EasyJet shares have tumbled after the group warned soaring fuel costs are expected to double half-year losses" src="http://londonglossy.com/wp-content/uploads/2011/01/min-fuel-cost-fears-hit-easyjet-shares.jpg" alt="EasyJet shares have tumbled after the group warned soaring fuel costs are expected to double half-year losses"/></a></p>
<p>Budget airline easyJet has seen its shares tumble after the group warned that soaring fuel costs are expected to double half-year losses.</p>
<p>EasyJet plummeted more than 13% following a grim update in which it revealed the impact of an oil price bubble and also laid bare its hit from December&#8217;s snow and strike action by European air traffic controllers.</p>
<p>The low-cost airline said last month&#8217;s snow chaos cost it £18 million, while the strikes in Spain and France added another £6 million, in addition to £7 million in lost profits caused by the impact on passenger demand.</p>
<p>It hopes to claw back a significant part of the weather and strike impact through cost savings and more sales as it increases capacity.</p>
<p>But easyJet cautioned a 32% surge in fuel costs is expected to lead to pre-tax losses in its first half &#8211; traditionally a loss-making period &#8211; of between £140 million to £160 million compared with £78.7 million a year earlier.</p>
<p>Airline experts also raised the alarm over signs the industry&#8217;s lucrative revenues stream from extra charges may be slowing. EasyJet reported a 2.7% fall in extra charges per seat in the quarter to December 31 as fewer passengers paid for checked-in baggage.</p>
<p>Analysts at Investec Securities said it was cause for concern: &#8220;This is highly unusual &#8211; we can&#8217;t remember the last time an airline saw unit ancillaries fall.&#8221;</p>
<p>The pre-Christmas quarter was a tough one for easyJet as the extreme weather and strikes saw more than 3,500 easyJet flights cancelled, with at least one of its airports closed every day in December.</p>
<p>Carolyn McCall, chief executive of easyJet, said: &#8220;EasyJet will always support its passengers when external events impact their journey, but we call on governments to provide sensible legislation for airport regulation and air traffic control.&#8221;</p>
<p>Passenger numbers increased by 8.8% and revenues rose 7.5% in the quarter to December 31 despite the disruption.</p>
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