Easyjet Profits Soar 22% On Passenger Growth

EasyJet (Other OTC: ESYJY - news) has reported a 21.5% jump in annual profits and raised its dividend.

The no-frills carrier posted a pre-tax profit of £581m for the year ending 30 September, in line with upgraded company guidance.

Passenger numbers rose 6.6% to 64.8m over the period and easyJet said forward bookings were slightly ahead for the winter
season ahead.

However, its fuel costs increased by £69m during the year.

The company - Europe's second-largest low-cost carrier behind Ryanair - said it would lift its ordinary dividend per share to 45.4p, in line with a proposal made earlier this year to reward shareholders with 40% of pre-tax profit, above the previous one-third distribution.

The company did not propose paying a special dividend.

Chief executive Carolyn McCall said: "easyJet has continued to execute its strategy, delivering another strong performance and enabling easyJet to deliver record profits for the fourth year in a row.

"We are also proposing to increase the proportion of our profits after tax paid in dividends from one third to 40%, reflecting our confidence in the future of easyJet.

"Our performance demonstrates our continued focus on cost and progress against every strategic revenue priority.

"easyJet has opened up clear blue sky between us and our competitors – both legacy and low cost - with our unique and winning combination of the best route network connecting Europe’s primary airports, with great value fares and friendly service.

"I would like to thank all of our people who have worked so hard to deliver sustainable growth and returns for our shareholders."