EasyJet has raised its year-end profit expectations to as much as £250 million against previous forecast of between £200 million and £230 million. But the budget airline warned that its 2012 fuel bill is expected to rise by £220 million.
It will also be affected by the introduction of the Emissions Trading Scheme while higher costs at regulated airports in Spain, Italy and the UK are also expected to “negatively impact cost performance” next year.
EasyJet attributed this year’s improved financial picture to cost controls, an improved operational performance across the network and better ground handling of aircraft.
There has been particular strength on city routes used by business and short break leisure travellers, the airline said in a pre-close trading update issued today. The increase in total revenue per seat at constant currency for the second half of the year is expected to be around 6%, and for the full year around 3%.
As a result the company expects to deliver a year end special dividend of £150 million – a prospect about which it had previously remained tight-lipped. An estimated total cash return to shareholders for the year of approximately £190 million is expected.
“The annual dividend and the one-off return will, in the absence of unforeseen circumstances, be declared with our full year results in November and paid in the early part of calendar year 2012,” the airline said.
A third of seats in the first quarter of the year ending September 30, 2012 are booked, at a similar level to the same period last year. Total revenue per seat continues to show improvement “albeit at a lower rate of growth than the strong fourth quarter of 2011”.
Chief executive Carolyn McCall said: “EasyJet’s strong operational and record financial performance this year reflects the successful implementation of our strategy.
“Despite an increasingly difficult environment for airlines, the strength of easyJet’s performance means that it is able to return approximately £190 million to shareholders demonstrating the resilience of the model, and that it is well-positioned to continue its success across Europe.”