Profits up at easyJet

easyJet, the Luton-based budget carrier, said it expects to increase profit by 20% next year, after reporting a 48% increase for the last full year.

Europe’s second-biggest budget airline carried 37.2 million passengers in the 12 months to 30 September. Pre-tax profit and exceptional items was £191.3 million in the same period compared with £129.2 million a year earlier.

However, the group said increasing oil prices meant the fuel environment remains challenging but added that high fuel costs would be partly offset by the weak dollar.

Over the last 12 months, easyJet added 8 destinations and 46 routes, bringing its network to 289 routes via 77 airports in 21 countries.

Chief executive, Andy Harrison, said in spite of tough conditions, revenue, profit and return on equity have all shown strong improvements reflecting the success of our focus on low cost with care and convenience.

Finally, easyJet said it expects to complete the £103.5 million purchase of GB Airways by January 2008. GB services fly from Gatwick, Heathrow and Manchester, although the purchase by easyJet does not include the Heathrow take-off and landing slots.

GB Airways operates a total of 39 routes - 28 from Gatwick, 6 from Manchester and 5 from Heathrow. easyJet said the deal was consistent with its expansion strategy and would strengthen its position at Gatwick.

Story link: Profits up at easyJet