Low cost airline easyJet has seen total revenue for the last three months of 2012 rise by 9.2%, up to £833m.
The airline also reported that passenger numbers were up by 6.2% over the same period, to 13.7 million.
EasyJet (Other OTC: ESYJY - news) , which said around 80% of its first half seats were now booked, expects to contain pre-tax losses over that period to between £50m and £75m, compared to the £112m loss reported in the first half of last year.
The company has engaged in an aircraft purchase programme and now operates more than 200 planes.
It has also seen growth in the number of business travellers flying with the British-based airline.
EasyJet is Europe's second-largest low cost airline, after Irish-based Ryanair.
Chief executive Carolyn McCall said: "EasyJet has made a strong start to the year due to a combination of management action, competitor capacity reductions and the benign operating environment.
"The good performance in the quarter and the structurally advantageous position that easyJet occupies in the European short-haul market means we remain confident in our outlook for the business."
She added: "Although the economic environment remains challenging, easyJet's strong customer proposition, combined with the actions that management are taking ensures that easyJet is well positioned going forward to deliver sustainable growth and returns."