Easyjet eyes big jump in profits

The Luton-based carrier said demand had remained strong in July’s hot weather and throughout August, while figures also showed that it carried 4.8 per cent more passengers in September.

EasyJet added that profits for the year to September 30 were now set to be at the top end of City expectations, having already upped guidance in July when it defied concerns about the impact of the heatwave and said it was in line to smash profit forecasts.

The group now expects annual profits of between £470m and £480m, against £317m a year earlier, and said revenues per seat were also expected to grow by around six per cent.

It said that more than a quarter of seats have been sold in the first half of its new financial year, in line with bookings from a year earlier.

But the company cautioned that half-year fuel costs were expected to rise by up to £30m year-on-year, while currency movements would also have a £10m impact.

EasyJet has shrugged off fears over a difficult summer for getaways amid the warm sunny weather, as well as many of the woes impacting rival Ryanair.

The Dublin-based airline warned over profits last month, saying it was being hit by increased competition, while fares were under pressure from Europe’s continued economic problems.

EasyJet was recently given the green light to modernise its fleet after shareholders backed plans to order up to 235 new aircraft - in spite of objections from founder Sir Stelios Haji-Ioannou.

It will upgrade and expand its fleet by acquiring 135 Airbus planes over the next nine years. There is also an option to buy a further 100 Airbus planes as part of the deal.

The purchase is expected to allow easyJet to boost passenger numbers from the current level of just over 60 million a year to around 90 million.