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HOW do you make a small fortune in the airline business? Start with a large one.

Or so the old joke goes. But the success of EasyJet and Ryanair has defied that sceptical view of the industry as a jumbo-sized money pit.

EasyJet is increasing the number of seats it is flying by around 10pc a year. Profits have been bolstered by extras that passengers pay for, too, from hold baggage to paninis.

The bankruptcy of competitors has also played into EasyJet’s hands, as did Ryanair’s pilots strike.

However, things aren’t universally rosy, and the airline had to warn the market this week that it’s seeing weaker consumer demand thanks to economic concerns and – of course – Brexit.

Both EasyJet and Ryanair are continuing to increase capacity, which will put downward pressure on ticket prices and profit margins. That’s likely to push weaker operators to the brink and the survivors can pick up the pieces.

In the meantime, however, rising costs, such as fuel prices, could weigh on EasyJet’s profits and its share price.