EasyJet (UK) (easyJet.com) (London-Luton) expects first half losses to shrink, helped by growing capacity and record number of business passengers in the first quarter.

The economy airline expects losses of between £10 million ($15.1 million) and £30 million ($45.5 million) in the first half of the year, compared with £53 million ($80.4 million) last year. The company also hopes to pass lower fuel costs on to passengers.

Easyjet chief executive Carolyn McCall said in a statement:

“We further strengthened our network in the quarter adding around 500,000 seats, the majority of which are from airports where EasyJet has a number one or number two position,”

“This combined with our new TV ads aimed at business travellers enabled EasyJet to sell record numbers of seats to business travellers in the first quarter,” she added.

Oil prices:

The largest carrier in the UK said it expects to pass fuel cost savings on to passengers, probably cutting around £2 off its average fare.

“EasyJet expects that lower fuel costs will be beneficial for its customers as fares adjust,” it said.

Oil prices have fallen by more than half since the summer, and the firm expects its annual fuel bill to be between £90m and £130m less than it was in the 12 months to 30 September 2014.

Competitor Ryanair (Dublin) is also trying to attract more business travellers, with the Irish carrier adding new routes and boosted capacity, and has made moves to improve its customer service. Its shares hit an all-time high this month after a surge in passenger numbers.

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Assistant Editor Oliver Wilcock reporting from Manchester.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A320-214 G-EZWV (msn 6177) with Sharklets arrives back at bLondon’s Gatwick Airport.

EasyJet (UK) aircraft slide show:

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