EasyJet Eyes Cheaper UK Hubs Beyond London

EasyJet's chief executive, Kenton Jarvis, has indicated a potential expansion of the airline's operations at UK regional airports, seeking more cost-effective travel hubs away from London's escalating airport charges. Jarvis highlighted that regional airports provide 'far better value' compared to London, particularly criticizing Heathrow's high fees. The airline has already increased its aircraft presence at Manchester, Liverpool, Bristol, and Edinburgh, with a new base planned for Newcastle next year, while noting no recent additions in London.

This strategic pivot by EasyJet occurs as the travel industry voices strong opposition to government tax increases. Jet2's CEO, Steve Heapy, recently accused ministers of treating the sector as a 'cash cow,' warning that rising costs will inevitably lead to more expensive holidays for consumers. A primary concern is the increase in Air Passenger Duty (APD), which is passed on to passengers, with further rises planned in line with inflation from 2027.

Further exacerbating cost pressures, airports face significant increases in business rates, potentially doubling bills for major London airports like Heathrow and Gatwick within four years. This tax hike could lead travel hubs to increase charges for airlines, which would likely be passed on to passengers. Jarvis cautioned that such price increases could significantly reduce passenger demand from cost-conscious travelers, potentially 'crashing demand'.