Forward bookings for the first half of the 2015 financial year are “slightly ahead” year-on-year, easyJet reported this morning.
Chief executive Carolyn McCall, revealing increased full year profits, claimed the budget carrier had opened up “clear blue sky” over rivals.
The airline used its annual results statement to voice concern over the continued increase in taxes on aviation across Europe, “which is undermining European growth and ultimately jobs”.
The carrier said: “EasyJet has undertaken work to demonstrate to governments that these taxes are not in their interest or those of consumers or people working within the sector.
“The forthcoming general election in the UK provides an opportunity for Air Passenger Duty to be addressed in the UK.”
EasyJet plans to raise capacity by around 5% over the next 12 months and hopes to benefit from a reduction in fuel prices and the introduction of a simple passenger loyalty scheme.
The airline’s fuel bill for the winter period to March is expected to be between £12 million and £22 million lower than the same period in 2013-14.
Fuel costs are expected to be down by as much as £70 million for the full financial year to September 2015
But exchange rate movements are expected to have a £20 million adverse impact over the 12 months to September this year.
Gatwick will remain a focus for growth with a 10% rise in capacity expected in the first half of the 1014-15 financial year following the purchase of Flybe slots at the airport.
“EasyJet is successfully executing its strategy of offering its customers low fares to great destinations with friendly service so that it will continue to win in a more competitive market,” the carrier said.
“This means easyJet is well placed to continue to deliver sustainable returns and growth for shareholders.”
The projections came as the airline revealed a 12.5% rise in pre-tax profits to £581 million in the year to September 30 based on a 6.3% increase in revenue to more than £4.5 billion.
The airline is recommending an increased ordinary dividend to shareholders of £180 million or 45.4p a share based on its enhanced ordinary dividend policy of paying out 40% of annual profit after tax.
McCall said: “EasyJet has continued to execute its strategy, delivering another strong performance and enabling easyJet to deliver record profits for the fourth year in a row.
“We are also proposing to increase the proportion of our profits after tax paid in dividends from one third to 40%, reflecting our confidence in the future of easyJet.
“Our performance demonstrates our continued focus on cost and progress against every strategic revenue priority. Our people are fully aligned behind our strategy and this gives us strong momentum to continue delivering.
“EasyJet has opened up clear blue sky between us and our competitors – both legacy and low cost – with our unique and winning combination of the best route network connecting Europe’s primary airports, with great value fares and friendly service.”
The airline increased capacity in the UK by 5.8% and launched 24 new routes in the 12 months to September 30. It now has 127 aircraft in the UK and claims to hold leading positions in nine out of 11 UK bases.