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* Q1 revenue per seat (RPS) falls 3.7 pct
* Sees Q2 RPS declining by mid-single digit
* Shares down 2 pct (Adds CEO, analyst comments, share price)
By Sarah Young
LONDON, Jan 26 (Reuters) - British low-cost airline easyJet said security fears hit demand at the end of 2015 andthe pressure on ticket prices was still being felt, though arecovery was underway.
Attacks in November that killed 130 people in Paris, one ofthe world's most visited cities, curbed demand for leisuretravel just weeks after a plane crash over Egypt in Octoberhalted flights from Britain to a popular winter sun destination.
EasyJet, Europe's second-largest budget airline bypassengers after Ryanair, forecast revenue per seat(RPS) would decline by a mid-single digit percentage inJanuary-March as airlines continued to keep prices down to boostdemand.
Consumers were already enjoying cheaper fares as airlinespassed on the benefits of lower fuel bills.
For the three-months to Dec. 31, easyJet's RPS fell 3.7percent at constant currencies, in line with analysts'expectations, with 2 percentage points of that declineattributed to the fall-off in demand from the Paris attacks.
In the past, such attacks have only temporarily affectedtravel, with airlines typically cutting prices to lurepassengers back.
EasyJet said bookings and prices had shown a markedimprovement from November and December lows, but RPS wouldcontinue to be affected as the recovery was gradual.
"We did not cut prices to the extent that some othercarriers did and that was a deliberate strategy from ourperspective," Chief Executive Carolyn McCall said on an investorcall on Tuesday.
By contrast, Ryanair slashed prices to fill its planes, itsfinance chief told Reuters earlier in January. Ryanair willreport its quarterly RPS on Feb. 1.
EasyJet shares were down 2 percent to 1,598 pence at 1215GMT, within a UK blue-chip index down 0.2 percent.
Barclays analysts called easyJet's RPS forecastdisappointing and said they saw first-half pretax profit comingin lower than expectations.
EasyJet said that for the year to Sept. 30, it was on courseto meet market forecasts for pretax profit of 738 million pounds($1.1 billion), helped by a lower fuel bill and better thanexpected cost-savings.
McCall said security fears about some holiday destinations,such as Turkey and Morocco, would persist and Europeanholidaymakers would likely favour beach trips closer to homethis summer.
"I would say where the greatest demand will be is all thebeach destinations in the Mediterranean that we are very, verystrong at delivering, so actually it plays very much to ourstrengths," she said.
($1 = 0.7040 pounds) (Editing by Keith Weir and Mark Potter)
