EasyJet under pressure as Jet2 launches flights from Gatwick

EasyJet faces a challenge to its dominance at Gatwick Airport after discount rival Jet2 revealed that it would launch flights there.Jet2, based in Leeds and already a force at northern airports such as Manchester, will begin services from the London hub in March after securing scarce operating slots there.Steve Heapy, its chief executive, said flights from Gatwick will mark a “transformational next step in Jet2’s ambitions”, opening up a market of 15 million people within an hour’s travel.EasyJet shares fell 3pc in early trading following news of the plan, while Jet2 stock traded higher.The launch will establish Jet2 as a major operator at Gatwick, with the airport’s chief executive, Pierre-Hugues Schmit, saying Jet2 will be the biggest new entrant at the airport this century.The arrival of Jet2 at Britain’s second-busiest airport will represent a particular threat to easyJet’s holiday business, which has become a key profit driver in recent years.While easyJet has been selling an increasing number of hotel and flight packages, Jet2 is by far the largest tour operator in the UK, with seven million package customers this year. That’s more than twice the number at easyJet.The first summer of Jet2’s Gatwick operations will feature flights to 29 resorts in countries including Spain, Greece, Turkey, Portugal and Italy. The inaugural service will be to Tenerife on March 26, ahead of the Easter holidays.The heightened competition comes amid concerns that tax increases in the upcoming Budget may force Britons to rein in holiday spending.Jet2’s expansion coincides with Gatwick moving forward with a £2.2bn second runway, after the Government approved the project in September.The new landing strip will almost double Gatwick’s capacity to around 80 million passengers a year, allowing airlines to add 110,000 more flights. The second runway could open as early as 2030.Jet2 was able to get into Gatwick after the release of a batch of new flight slots, which Mr Heapy called a “once in a generation opportunity”. He said that Jet2, the third-largest UK airline by passenger numbers, had long harboured ambitions to operate from the southern airport.Six Airbus planes will initially serve Gatwick, which Jet2 said will create more than 300 local jobs, including pilots, engineers and cabin crew. The launch is a boost for Gatwick, which lost some major carriers, including Virgin Atlantic, during the Covid pandemic.