easyJet is to cut a fifth of its flights from Luton after failing to secure a reduction in landing charges from the airport.

In a statement, the company said it would move the services to “more profitable airports” and expects to redeploy the aircraft to continental European bases.

It is not yet clear how the move will affect EasyJet's Luton staff ahead of the conclusion of a 90 day consultation period that was initiated today. The airline said there were “sufficient opportunities” within its network for all employees affected by the announcement, and that it intended to “redeploy as many as possible.”

easyJet employs 530 pilots and cabin crew at Luton.

easyJet claims that charges at Luton - which is owned by Luton Borough Council and operated by Spanish company, Abertis - have risen by 25 per cent over the past three years, a price hike exacerbated by a parallel increase in airport passenger duty (APD).

According to a statement from the airline: “easyJet has been in protracted negotiation with Abertis, the Spanish operator of Luton and its owner Luton Borough Council, which is understood to receive over half of the airport charges. These negotiations have broken down leaving easyJet no alternative but to reallocate parts of its flying programme.”

The company said it would also be pulling out from East Midlands completely at the end of this year, withdrawing its three aircraft in the process, to concentrate on “higher priority markets.” 120 staff are currently employed there.

Elswehere in the East of England, flight crew at London Stansted could also be cut as the easyJet seeks to “right crewing levels for future flying.” The low-cost carrier said it remained committed to growing its flight network at around 7.5 per cent per year over the medium term.

Andy Harrison, easyJet’s Chief Executive, said: “I am deeply disappointed that Abertis and Luton Borough Council have not taken a more far-sighted approach which would have protected jobs at Luton. At a time when jobs are under threat in the town the airport should be an engine for growing employment, not a source of further unemployment. This can only happen, however, if the owner and the operator make the right commercial decisions and deliver a competitive cost base.”

“The rise in APD hits regional airports hardest and increases the pressure to move aircraft to mainland Europe. The Government seems to think that APD is a free lunch. It isn’t; it costs jobs in the UK.”

easyJet also issued its August traffic numbers showing a 4.7 per cent increase on the previous August to 4,800,336 passengers.