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Low-cost flight operator easyJet said an extra charge for checked bags plus an increase in passenger numbers boosted total revenue by 14.1 per cent to £418 million for the quarter ending December 31st 2007.

But easyJet added that a 2007 UK air passenger tax hike continues to impact its figures, reporting a four per cent decline in passenger revenue per seat for the first quarter compared to 12 months earlier.

Passenger numbers grew 12.4 per cent in the quarter to 9.1 million, mainly due to the development of the European markets, particularly Italy, Spain and Switzerland.

As a result, total non-UK originating passengers increased significantly, by 22 per cent in the period, while UK originating passenger numbers grew by five per cent.

Ancillary revenues grew by 61.9 per cent in the period, largely as a result of the introduction of a £2 checked-bag charge from 1st October, which has since been increased to £3.99.

The airline said that "competitive issues" had affected the percentage of seats that easyJet could fill each flight and these are being addressed.

Looking ahead, the company warned that pre-tax margins are expected to decline by two to three percentage points, largely due to increased fuel costs.

For the full year, profit guidance remains unchanged with underlying profit before tax expected to grow by around 20 per cent.

As of 14:30 GMT, shares in easyJet had fallen by 5.47 per cent to £4.23 on the London Stock Exchange.