EasyJet reports strong end to year

Low-cost airline EasyJet today said it carried 2.64 million passengers last month, a rise of 11.2% on the figure seen in the previous year.

The improvement came after the Luton-based company launched nearly 50 new routes in 2006.

The airline’s load factor – how full its planes were – for December was also up, from 80.5% to 81.2%, according to a trading update.

Today’s figures mean the airline carried 33.7 million passengers during 2006, a rise of 11.1% against 30.3 million in the previous year.

The increased passenger number drove up total revenues from £1.38bn (€2bn) to £1.67bn (€2.4bn), representing an increase of 20.7% on the previous year.

But for 2006 as a whole, the load factor fell slightly from the previous year, from 84.9% to 84.6%.

Analyst Gert Zonneveld, of Panmure Gordon stockbrokers, forecast “further strong profit growth” and increased his target price for EasyJet shares from 650p to 750p. EasyJet shares were up 4p at 656p today.

He said: “The outlook for 2007 is positive. Seat capacity should grow by 15%, and we expect the revenue environment to remain favourable.”

It flies 258 routes between 68 European airports and, earlier this month, announced it would launch three new services to the Spanish island of Ibiza this summer.