PRICE initiatives including tax-free flights appear to have paid off for no-frills airline easyJet as figures show the number of empty seats falling.

In a summer trading update the carrier, which operates flights from Newcastle, said that while average fares in the three months to June 30 were 2.8 per cent lower than at the same point last year, its load factor rose slightly to 84.8 per cent from 83 per cent.

The reduction in yields was lower than the three per cent year-on-year decline seen in the six months to March 31, the first half of its financial year, but chief executive Ray Webster remained cautious.

He said: "We have had a good summer to date and the current level of forward bookings for the remainder of the financial year is showing strong growth and, importantly, currently demonstrates similar load factors to those seen at the same time last year although at marginally lower average yields.

"However, we remain highly dependent on the final quarter's trading, in what are still uncertain market conditions, for the achievement of our full profit potential."

He said slower expansion had reduced the pressure on yields but added that the company saw good potential for further expansion throughout Europe, with more than 80 airports responding to initial soundings about easyJet expansion.

Overall, passenger numbers were up 98 per cent to more than 5.2 million, reflecting increased capacity boosted by the acquisition last year of rival GO.

EasyJet flies to airports including Alicante, Barcelona and Belfast.

From August, the number of destinations available from Newcastle will increase still further, with plans to introduce flights to destinations including Paris, Prague and Bristol.