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STORY: EasyJet says holiday demand is strong despite economic headwinds.

The UK budget airline said Tuesday (November 29) that bookings for spring and summer were looking good.

Customers also seem to be accepting higher ticket prices, though the carrier said discounting would be needed in quieter periods.

The relatively robust outlook comes despite growing pressure on household finances.

Soaring inflation is squeezing family holiday budgets.

EasyJet warned that the air travel industry faces price pressures, too.

Rising fuel prices, wage inflation and a strong U.S. dollar are all taking a toll.

However, boss Johan Lundgren says budget airlines are well placed for a coming slowdown.

He says easyJet always does well in tough times.

Arch-rival Ryanair has already predicted it will see strong fare growth over the coming 18 months at least.

On Tuesday, easyJet posted a loss of around $213 million for the 12 months to the end of September.

Over that time, health-crisis related disruptions slightly outweighed a very profitable summer.

Shares in the airline dropped around 4% in morning trade.

Some analysts said Tuesday’s numbers lacked much in the way of positive surprises, and easyJet didn’t sound as bullish on fares as its rivals.