EasyJet targets full-year profit

Low-cost carrier easyJet has said it will report an annual profit this year

Low-cost carrier easyJet has said it would be one of the few airlines to report an annual profit this year as its weathers industry turbulence.

The "no frills" group said it expects underlying pre-tax profits of between £25 million and £50 million for the year to September, compared with forecasts for hefty losses at rivals such as embattled British Airways.

EasyJet carried 2.9% more passengers in the three months to June 30, at 11.9 million, with revenues per seat up 10.9% to £51.41.

Total revenues rose 12% to £721 million as it also reaped rewards from a 34% hike in so-called "ancillary charges". A late Easter and increased traffic from non-UK holidaymakers taking advantage of the strong euro added to the third quarter cheer.

But easyJet said it was also picking up business as others cut back in tough conditions. While industry capacity is down 4% in general on short-haul European routes, easyJet outlined plans to grow its capacity by 4% by the end of September and maintain fleet expansion plans.

It has resolved a long-running spat with the airline's founder and biggest shareholder Sir Stelios Haji-Ioannou over growth plans, announcing the board had reached agreement on a "prudent" fleet expansion programme.

Sir Stelios last year increased his personal stake in the business to almost 27% amid a row over strategy. The flamboyant easyGroup empire millionaire wanted the board to consider maintaining dividend payouts by scaling back growth plans to match market conditions.

The airline also said it had bowed to Sir Stelios's request to hire Bob Rothenberg of accountancy firm Blick Rothenberg as a non-executive director. He joins the board on August 1.

Luton-based easyJet saw shares rise more than 3% on its third quarter cheer.

Andy Harrison, easyJet chief executive, said: "This has been a resilient third quarter and our position has continued to strengthen as we made market share gains across Europe. EasyJet is continuing to perform relatively well in tough trading conditions and we expect to be one of the few airlines to make a profit this year."