EasyJet sees growth in European demand

Low-cost airline easyJet forecast a “substantial” improvement in profits today after passenger numbers jumped 9% in its most recent quarter.

Luton-based easyJet said the bulk of the increase came from outside the UK as it targeted growth markets with expansion at airports such as Milan Malpensa, Madrid Barajas and Paris Orly.

The number of non-UK originating passengers increased by 20% in the final quarter of 2009, accounting for 54% of all passengers.

Overall, the company carried 11 million customers in the quarter as revenues lifted 10% to £607.5m (€699.54m) and average revenue per seat improved by a bigger-than-expected 4.2% to £47.50 (€54.6m).

Weather-related disruption closed a number of airports during December, but easyJet said it still managed to fly nearly 90% of its programme.

Chief executive Andy Harrison said: “Economic conditions remain challenging and we continue to expect a tough trading environment.

“However, the underlying performance of the business in the first quarter has been encouraging and easyJet remains on track to deliver substantial profit improvement during 2010.”

EasyJet shares opened more than 3% higher today.