EasyJet profits soar by 51%

EasyJet’s annual profits soared 51 per cent after efforts to attract more business travellers saw it fly more than 60 million passengers for the first time.

The low-fares carrier hailed the success of recent initiatives, such as allocated seating and fast-track security, for boosting its popularity with more affluent, older fliers and business passengers.

Profits surged to a new high of £478 million (€569 million) in the year to September 30, up from £317 million — while easyJet offered yet more cheer to investors as it revealed plans to hand out a £175 million windfall to shareholders through a special dividend payment.

Chief executive Carolyn McCall said easyJet was benefiting from its advantage in the European short-haul market as rivals have cut their operations in recent years.

It is also benefiting from moves to target business travellers and said its share of the market had increased by 4 per cent, with 10 million corporate fliers a year.

Allocated seating is proving a hit with wealthier retired people, who had been put off by the boarding experience, easyJet said.

Bookings for the first half are so far flat on a year earlier, according to the firm.

Travel restrictions in Egypt will also impact on first-half trading, while easyJet said airport disruption was another challenge as strikes and a recent power outage at Gatwick has already seen 152 more flights cancelled year-on-year in October alone.

Costs will be another headache for the carrier, which is pencilling in a rise of up to £50 million for its annual fuel bill, as well as higher airport charges and maintenance expenses.

EasyJet still expects to increase passenger numbers over the year ahead, with seats flown set to rise by around 3.5 per cent in the first half and 5 per cent in the full year - up from a 3.3 per cent increase in the year to September 30.

The number of those flown in the past year lifted 4 per cent to a new milestone of 60.8 million.

PA