Profits boost leads to Easyjet shareholder dividend

LOW-cost airline easyJet marked better-than-expected profit figures today by announcing plans to pay a dividend to shareholders for the first time.

New chief executive Carolyn McCall reported pre-tax profits of 154m in the year to September 30 - an increase of 99.3m after sales rose by 11.5 per cent to 3bn, with passenger numbers up 8 per cent to 48.8 million.

The airline's strong results were achieved despite disruption caused by the Icelandic volcano that meant easyJet had to cancel 7,314 flights, disrupting 960,000 passengers.

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The plan to pay a dividend next year should appease founder Sir Stelios Haji-Ioannou, whose family controls around 38 per cent of the shares and has long called for the easyJet board to start payments to shareholders.