Strong EasyJet results due to be reported tomorrow (Tuesday) have been overshadowed by the prospect of another row sparked by founder Sir Stelios Haji-Ioannou.
He is reported to be demanding an increase in dividend payments as the airline prepares to reveal expected profits of up to £250 million for the year to September, up from £188 million last year.
Sir Stelios, who with his family owns 38% of the budget carrier, sent a letter to chairman Mike Rake, which was seen by the Sunday Times and lists several demands including more than doubling its dividend to 50% of earnings.
The newspaper also reported that Sir Stelios has accused the EasyJet chairman of trying to turn his brother Polys Haji-Ioannou – another big shareholder – against him.
Sir Stelios has threatened to vote to oust directors unless they agree to his demands, the newspaper claimed. These include giving shareholders a vote on all new aircraft orders, pledging the next aircraft order will be a three-way tender between Boeing, Airbus and Bombardier, and publishing the profitability of each aircraft instead of profits per route.
The airline’s former boss, who stepped down from the board last year, has waged a long-running campaign against EasyJet’s expansion plans and called for cash to be returned to shareholders.
EasyJet thought it had seen an end to the dispute after it promised £190 million in dividends to investors, landing the airline’s founder and his family about £70 million.
But the row blew up again when Sir Stelios recently wrote to the company to announce a rival called Fastjet.