Easyjet profits up 9% despite higher fuel costs

CUT price airline EasyJet posted a 9% rise in annual profits yesterday despite a higher fuel bill.

The airline, which flies to Cork, Shannon and Knock airports, said pre-tax profits for the year to end September were €100 million.

Turnover for the year rose from €1.5 billion to almost €2bn.

It came after a year in which EasyJet carried 29.6 million passengers, up 21% on last year, although it said this growth would fall to around 15% in its new financial year.

Unveiling his last set of results as chief executive, Ray Webster said: “These are commendable results in difficult conditions delivered partly through a strong year-round focus on costs.”

Though the airline carried roughly the same number of passenger as Ryanair over the same 12 months, its profits are less than half of what the Irish carrier made in six months.

EasyJet protected itself from higher fuel prices by signing a new contract that will cut maintenance costs by a quarter, increasing crew efficiency and cutting ground handling costs. It also benefited from the introduction of the Airbus A319.

As a result, costs excluding fuel were 4% lower over the year.

Profits were also boosted by higher fares and a 17% increase in ancillary revenues - income from areas such as food and drinks, hotels and car hire.

Mr Webster forecast pretax earnings will rise as much as 10% in fiscal 2006 as the airline adds more European routes. EasyJet will increase capacity by about 15%, down from a rate of over 20%, as yields fall, Mr Webster said.