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 Budget carrier, easyJet is managing to cruise along above the current economic turmoil and sees a healthy rise in profits aided by an influx of non-UK passengers flying on a stronger Euro.
Europe's second largest economy carrier has released interim figures for the first quarter to December, telling of an anticipated 20 per cent increase in pre-tax profits for the full year, with forward bookings withstanding the unstable financial climate.
Shares in the Luton-based carrier have continued their recent instability however, and the announcement has not stopped another dip in value similar to Monday's following a gloomy outlook from its biggest competitor.
The news was more upbeat from easyJet, with a 14 per cent increase in revenues taking the figure to £418m for the 13 weeks to the end of December, aided by a 12 per cent boost in passenger numbers to 9.1m.
It said that the majority of the growth in passenger figures was achieved through its successful development of European markets, particularly Italy, Spain and Switzerland.
Investment in the regions had brought about a 22 per cent increase in non-UK passengers, it said, compared with a growth of just five per cent in customers flying from the UK.
The company said that the non-UK market had pushed total revenue per seat up ahead of expectations, which increased by 0.5 per cent, thanks also in part to the introduction of the checked bag charge during the period.
The doubling of UK Air Passenger Duty back in February last year continued to impact the company, with passenger revenue per seat, excluding the ancillary revenue gained from the new checked baggage charge, declining four per cent.
Looking ahead, the company said that forward bookings are in line with expectations despite the 'uncertain macro-economic environment,' but added that load factors are expected continue a slight downward trend compared to last year.
It also said that crew costs are set to exceed expectations and increased fuel costs take two to three percentage points from its pre-tax margins.
The first half will also be subjected to a £7m hit from the company's acquisition of GB Airways, slightly above normal levels due to the 'increase in marketing investment to ensure a strong summer performance,' it said.
Shares in the carrier have dipped by three per cent, or 14p, to 434p, but stayed well above the 420p point it brushed following Ryanair's news this week.
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