Gatwick agrees seven-year pricing deal with easyJet

The airline would not offer any guidance on price but it is likely a deal has been struck at a level considerably lower than the RPI inflation minus 1.6pc a year average set by the regulator for Gatwick.

Carolyn McCall, chief executive of easyJet, said: "This agreement gives eastJet certainty on passenger charges over the next seven years and a clear incentive to continue to grow. Our shared ambition is for Gatwick to be both our biggest and best airport."

The move will give Gatwick a boost as it seeks to persuade the government-backed Airports Commission that it should be allowed to build a second runway.

The airport earlier this week argued that it serves a wider range of airlines than its rival Heathrow, which is campaigning for a third runway. Stewart Wingate, chief executive of Gatwick, argues that Heathrow prices out low cost airlines, which are the fastest-growing segment of the UK aviation market.

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