Easyjet reports expected fall in profits

PROFITS at Easyjet, the British low-cost airline, fell by 28% to £51.5m (€74.6m) for the year ended September in line with market expectations.

Revenues were up 69% at £932m but increased costs arising from the group’s expanding operations affected profits. Fuel costs, airport charges and aircraft leasing payments all doubled during the year.

A strong second-half performance was crucial in turning around the airline’s first-half loss of £48.1m. The first six months of the year saw Easyjet suffer from weak economic conditions and a downturn in air travel caused by uncertainty before the conflict in Iraq. The group also blamed the SARS virus outbreak for its first-half performance. Chief executive Ray Webster said it had been a year of two halves but that he was encouraged by the full-year results and cautiously optimistic about the airline’s future performance.