Easyjet has posted a 21.5 per cent rise in annual pre-tax profits helped by a 6.6 per cent boost in passenger numbers.
In the 12 months to September 30 the budget airline’s profits rose to £581 million and passenger numbers increased to 64.8 million.
Easyjet’s CEO Carolyn McCall said the figures show the airline has opened up “clear blue sky between us and our competitors” and were achieved thanks to a "winning combination of the best route network connecting Europe's primary airports, with great value fares and friendly service".
“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,” McCall added.
Easyjet also reported that it has increased the proportion of bookings made by existing customers to 57 per cent, up from 50 per cent in 2010. This means that over 37 million passengers are rebooking each year compared to 25 million four years ago - a 50 per cent increase. The figure for returning business customers is even higher at 62 per cent.
To drive this trend further the airline has launched a trial of a frequent flyer loyalty scheme to reward most regular passengers. Easyjet said the trial, which has been running for the past three months and involves more than 15,000 passengers in the UK, France and Switzerland, has been well received by the trial group with 91 per cent saying the scheme “is appealing to them”.
Benefits to participants of the trial scheme include increased flexibility on bookings, a price guarantee and a dedicated phone number.
Easyjet's outlook for the next 12 months was largely positive, although it warned that costs per seat would increase by approximately 2.5 per cent due to rising airport, navigation and maintenance charges.
However, the airline also said an expected fall in fuel prices could drive costs down by as much as £22m over the next six months.
Easyjet.com