Budget airline EasyJet has reported first-half losses due to rising fuel prices coupled with a tough economy.

“The past six months has been tough with sharply rising fuel costs combined with cautious behaviour by consumers and an adverse impact from taxes on passengers,” easyJet’s Chief Executive Carolyn McCall said in a statement.

“With nearly half of summer seats now sold second half total revenue per seat at constant currency is slightly ahead of the prior year.”

Dividends will be paid next year for the year ending September 30 2011.

Increased passenger taxes caused £21 million of EasyJet’s losses while the rising price of fuel cost the airline £43 million.

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