PROFITS at low-cost airline easyJet climbed to a record £317 million yesterday as higher sales offset a further £182m surge in fuel costs.
The group achieved the 28 per cent rise in profits for the year to September 30 after it carried 58 million passengers – an improvement of seven per cent on a year earlier – and benefited from continuing cost-cutting efforts.
Europe’s fourth biggest short-haul carrier, which operates in the province from Belfast International Airport, received a late summer boost as holidaymakers delayed their holiday plans until after the Olympic Games.
The group saw revenues per seat rise by 7.5 per cent to £58.51 with currency movements stripped out, helped by the success of its “Europe by easyJet” adverts – its first television ad campaign featuring images from award-winning photographer Elaine Constantine and music by indie band The Wombats.
It has already sold around 45 per cent of winter seats and expects half-year revenues per seat to rise by “low to mid-single digits”, with forward bookings for the first half holding firm on a year earlier.
The group added that it plans to increase flight capacity by around 3.5 per cent in the first half as it continues to pick up business while some embattled competitors scale back services.
“These results demonstrate that easyJet is a structural winner in the European short-haul market against both legacy and low-cost competition,” said chief executive Carolyn McCall.
EasyJet also benefited from less disruption from weather and strike action than in previous years, with fewer than 1,000 flights cancelled against more than 4,000 the year before.
Shares in the group rose three per cent after the company doubled its annual dividend payout to shareholders to 21.5p a share.
The airline said its record performance was helped by an increase in demand from business passengers after launching paid-for allocated seating and more expensive flexible tickets to appeal to corporate fliers.
EasyJet flew six per cent more business passengers and increased its market share in the corporate travel market.
It was also buoyed by a surge in demand following London 2012 as Britons delayed their travel plans until after the Games, while disruption at London airports during the event itself was not as bad as first feared.
But the firm admitted it faces further cost pressures, including fuel price hikes and airport charges.
It expects its fuel bill to rise by another £30m in the current year, having spent £1.15bn on fuel in the past 12 months.
It is also braced for a £50m hit from unfavourable foreign exchange rates and said airport costs are likely to rise by £70m this financial year.