EasyJet plans new European routes

Low-cost airline easyJet today outlined plans to raise an estimated £90m towards a major expansion drive in Europe.

The Luton-based operation will offer new shares as it looks to take over routes vacated by other airlines in the wake of the US terrorist attacks.

EasyJet is to issue 26 million new shares, while founder and chairman Stelios Haji-Ioannou will reduce his stake with the sale of 13 million shares.

The moves came as easyJet announced better-than-expected financial results, with an 82% lift in pre-tax profits to £40.1m in the year to September 30.

The airline flew 7.1 million passengers during the period - an increase of 26% on last year - while 86% of tickets were sold via the Internet.

Chief executive Ray Webster said the company was ‘‘cautiously optimistic’’ about its prospects in the coming months.

He added: ‘‘While some other airlines are announcing job losses and fleet capacity reductions, we look forward to hiring additional staff to deliver planned growth.’’

EasyJet also announced it had resolved its long-running dispute with Luton Airport’s owner TBI over landing charges.

The 20-year agreement offers easyJet charges at existing levels but could be reduced if passenger numbers grow.