EasyJet sparks hopes for special dividend by lifting profit forecast

British airline, EasyJet is giving an increased forecast for upcoming full-year earnings in the latest indication of the success of its low-cost model. The forecast has spurred hopes of a lucrative reward to shareholders.

EasyJet’s cheap fares have helped it and rival Ryanair weather an increasingly competitive European short-haul market, while traditional airlines have struggled to compete.

The trend has been highlighted by a recent two-week strike by pilots at Air France over issues relating to a new discount airline, which helped propel some customers to rivals such as EasyJet.