EasyJet's Belfast route aids profits

Low-fares airline EasyJet will issue 26 million shares to fund new routes as latest financial results show the airline's Belfast services helped boost pre-tax profits last year to more than £40 million sterling (€63.8 million).

Chief executive Mr Ray Webster said its Northern Ireland operations had been a major contributor to EasyJet's 82 per cent surge in profits. The airline's results covering the year to the end of September show revenue soared to £356.9 million, a 35 per cent year-on-year increase. Total passenger numbers rose by 26 per cent to 7.1 million in the year under review, while its Northern Ireland traffic increased by 58 per cent to a record 867,131 people.

Mr Webster said that although bookings fell after the September 11th attacks on the US, the airline was cautiously optimistic about its future trading. "We believe EasyJet is in a strong position to capitalise on the downsizing of other carriers' networks.

"These are still early days since the New York and Washington attacks, and all airlines are still learning about the changed European environment," he added.

The airline plans to raise around £90 million to take advantage of potential opportunities that the changed environment may create. Its chairman, Mr Stelios Haji-Ioannou, also plans to reduce his stake in the firm by selling 13 million shares, currently worth about £40 million sterling.

Mr Webster said most of EasyJet's new capacity last year had been introduced on its Northern Ireland routes. The carrier more than doubled the number of seats out of Belfast to 37,000 per week in the past 12 months by introducing two new domestic and one international route. EasyJet said the latest results showed there was every justification for confidence in the Northern Ireland market and every reason for further growth.

The airline hopes to secure new slots at major airports within Europe, including Paris Orly and London Heathrow, and it has said Belfast is likely to be a beneficiary if these slots are obtained.

The airline also confirmed yesterday that it had agreed a 20-year contract with TBI, the owners of Belfast International Airport, regarding the terms of the airline's use of Luton Airport.

Meanwhile, the European Commission has ruled that airlines can retain landing rights until spring 2003, without having to use them. This will give Aer Lingus a boost as it can use its landing rights at major European airports to demonstrate its growth potential to investors. In the intervening period, other airlines can use the unused slots.