Stelios confirms retaking the airline private is a possibility

A spokesman for Mr Haji-Ioannou, whose company EasyGroup today owns 41% of Easyjet, confirmed that the Greek entrepreneur may buy back the firm.

The spokesman said no final decision had yet been made.

The comments come a month after Easyjet's share price fell by 15% following a profits warning caused by the recent high price of fuel.

"It is an option but there is no further comment," an EasyGroup spokesman quoted Haji-Ioannou as saying on Monday.

Easyjet's share price rose by almost 3% following the news.

Not surprising

It had been reported at the weekend that Mr Haji-Ioannou, whose family owns 41% of Easyjet, may spend some �650m to take the business private.

This possibility has been around since Easyjet's last profits warning and I would say it's very feasible Airline analyst Mike Powell Easyjet share price

Founded in 1995, Easyjet warned last month that fuel costs could cut 2004 profits by about �4m ($7m) due to fuel prices.

Analysts said Mr Haji-Ioannou's announcement was not unexpected.

"This possibility has been around since Easyjet's last profits warning and I would say it's very feasible," said Mike Powell, aviation analyst at Dresdner Kleinwort Wasserstein.

Tough sector

Mr Powell said it would only have a positive impact on Easyjet's share price.

Like all airlines, Easyjet has been hit by high fuel bills

"Clearly it's going to be a factor in the share price," he said.

The rise in fuel prices which has hit Easyjet's profits comes at a time of extreme competition in the European airlines sector.

One key rival in the low-cost market, Ireland-based Ryanair, said its passenger numbers were up 24% to 2.27 million in June, when compared to the same month last year.

The company has been cutting prices to keep its seats filled, and its load factor - the proportion of seats filled - was 87% of capacity, up from 79% in the same month the previous year.