EasyJet founder warns investors over price of tickets
EasyJet passengers are paying 33% more for tickets than they were four years ago, and founder Stelios Haji-Ioannou says that everyone may rebel against any further increases.
Stelios sent his warning in a circular to other investors before the easyJet AGM in 11 days' time, which is just the latest in a series of warning shots sent to management against expansion plans.
Haji-Ioannou said: "The company is doing better now because the prices have gone up but so have the costs. The unit costs have risen by 24% since 2008 and the average customer is now paying 33% more than they were paying four years ago. What happens if the consumers refuse to pay the even higher fares next year? We are then stuck with a higher cost base."
Stelios also thinks that easyJet are the "overpaying" directors at the company.
"The CEO and CFO made £5m and £3m respectively for FY [full year] 2012 alone. It is an unjustifiable salary advance of about 10 times on what they were earning at their previous employers only two years ago."
Surely, if easyJet just remain cheaper than most of the competition, they'll be fine?