Member Article

Easyjet profits soar in 2012

Budget airline Easyjet’s pre-tax profits soared after a late surge in summer flights, with a rise of nearly 28%.

The firm posted an increase of 105% for its dividend, up to 21.5 pence fro 10.5 pence per share, while total revenues rose by almost 12%.

Easyjet said that despite the decline of the Euro against British currency, a significant chunk of bookings over the summer months were made before the sharpest fall in the exchange rate.

As a result, the company was “shielded” from any impact the weakened Eurozone may have had, and profits did not suffer.

Chief Executive, Carolyn McCall, commented: “These results demonstrate that easyJet is a structural winner in the European short-haul market against both legacy and low cost competition.

“The strength of easyJet’s business model and strategy coupled with the hard work and dedication of the easyJet team has delivered record profits as well as a significant increase in returns for shareholders during the year.

“Whilst there is always the potential for unexpected events to temporarily impact financial results the Board of easyJet is confident that its business model, strategy and people will consistently continue to generate superior returns and growth for shareholders.”

The Luton-based airline said it would take advantage of its weakened competitors, and use diminished rival firms as opportunities for growth.

Looking forward to 2013, Easyjet predicted that its fuel bill for the coming year would increase by £30m and that movements in exchange rates will generate a £50m blow to the next financial year.

This was posted in Bdaily's Members' News section by Miranda Dobson .