Budget airline easyJet announced a big drop in winter losses today as Britons fleeing the country's deep freeze and capacity cuts by rivals helped boost passenger numbers.

Budget airline easyJet announced a big drop in winter losses today as Britons fleeing the country's deep freeze and capacity cuts by rivals helped boost passenger numbers.

It carried 26.6 million people in the six months to the end of March, a rise of 5.3% on a year earlier as revenues surged 9.3% to £1.6 billion and losses narrowed 46% to £61 million.

While the tough consumer climate and rising costs forced competitors to cut their capacity by 2.8% during the winter, easyJet said its 3.3% capacity increase to 30 million seats helped it narrowly beat City forecasts.

It expects more growth in its second half - when airlines traditionally make the bulk of their profits from holidaymakers.

Chief executive Carolyn McCall said the airline delivered a strong first-half performance, demonstrating the company's "structural advantage" in the European short-haul market against both legacy and low-cost competition.

She added: "The outlook for the second half of the financial year combined with the strong reduction in first half losses means that easyJet expects to deliver improved returns and profitability for the year ending September 30."

EasyJet expects to grew revenues per seat by 4% in the six months to the end of September.

As the tough market forced competitors to withdraw about two million seats over the winter, easyJet shifted capacity to routes which drove the highest returns.

It increased its presence at Edinburgh, Gatwick, Manchester and Southend while cutting aircraft at Liverpool and Luton.

The Luton-based operator earned 8.6% more per seat at £53.39, and was also helped by the early timing of Easter.

Its load factor - a measure of how full its planes are - increased by 1.7% to 88.6%.

However, disruption from heavy snowfall, de-icing planes and higher airport charges meant costs per seat excluding fuel rose 3.4% to £38.89.