Budget airline easyJet has posted a forecast-beating 78 per cent leap in annual profit and says demand remains strong despite the threat of war in the Middle East.
The firm, whose founder Mr Stelios Haji-Ioannou is serving his last day as chairman, said profit before tax jumped to £71.6 million sterling in the year to September 30th. Analysts' forecasts had ranged from £57 million to £66 million.
But some analysts have recently questioned whether the group, Europe's biggest budget airline, is losing focus in its quest for growth.
A rash of cancelled flights over the summer, for example, raised fears it was struggling to integrate Go, the fellow "no frills" operator bought for £374 million.
EasyJet shares have outperformed those of flag carrier British Airways by 17 per cent since the start of the year, but they have lagged closest budget rival Ryanair by 23 per cent. The shares closed at 390 pence yesterday, valuing the business at around £1.5 billion.
The firm said passenger numbers rose 60 per cent to 11.4 million in the year to September 30th, but average net fares fell 4 per cent to £46 as competition in the budget sector hotted up and airlines generally struggled with the drop in tourism after the September 2001 attacks on the United States.
Mr Stelios controls a stake of about 59 per cent in the business he founded in 1995 with two aeroplanes.
He is stepping down to focus on his other budget ventures, which include easyCar, easyInternetCafe and easyCinema. He is being replaced as chairman by his deputy, Mr Colin Chandler.