Easyjet achieves profits through business travel

by Alfie FEATHERSTONE on November 16, 2011

An increase in the amount of business and European travelers has helped EasyJet report improved profits for 2011.

Pre-tax profits of £248m for the financial year that lead up to 30 September were reported by the budget airline, which were in line with expectations and up from profits of £154m last year.

The improvements were led by an increase of 11.8 per cent in passenger numbers, with a million more people relying on the airline for their business travel. Two months ago, EasyJet announced a special dividend of £150m for shareholders.

Such a special dividend brings EasyJet’s total cash returns to its shareholders to £195m, 45.4 pence a share, for the year. Carolyn McCall, EasyJet’s chief executive, said that the results have been achieved in spite of headwinds of increased fuel costs and uncertain economic outlooks.

The airline experienced a £100m increase in the cost of fuel during the mentioned financial year, but said that it managed to offset such factors through efficiency savings. In spite of the downturn across the eurozone, advanced bookings for travel over the Christmas period are in line with 2010 as around 45 per cent of seats are now booked.

The airline improved its punctuality with around 79 per cent of its flights arriving within a quarter of an hour of their scheduled time, which is an improvement on 2010’s rate of 66 per cent.

Comments on this entry are closed.

Previous post: Kingfisher considers needed rescue package

Next post: Manchester airport backs full body scanners