easyjet Announces Record Annual Profits for 2012

easyJet, a UK based airline, has announced a record profit of £317 million for its financial year 2012.

The airline has recorded the increase in profit despite a £182 million increase in its fuel expenses in 2012 over 2011.

easyjet’s total revenue per seat in 2012 has increased by 5.9 percent to £58.51, due to increased load factors, while the seats flown figure has increased by 5.5 percent to 65.9 million for the same period.

Carolyn McCall, the chief executive officer of easyJet, said, ‘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.

As evidence of its confidence in easyJet’s current position and future prospects the Board proposes to increase the dividend from 10.5p to 21.5p for the year ended September 2012 which will see our shareholders benefit from easyJet’s success with £85m of dividends.

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.’

A company statement said, ‘easyJet is structurally positioned as the strongest pan European airline due to its cost advantage, leading market positions at convenient airports and great customer proposition of low fares with friendly and efficient service supported by one of the strongest balance sheets in European aviation.

As inefficient and financially weak competitors retrench, easyJet will continue its strategy to build its leading position on Europe’s top 100 routes where it has a 25 percent market share to become the leading point-to-point airline flying between primary airports. This will enable easyJet to deliver passenger growth, in excess of the market overall, of around 3 percent to 5 percent per annum and tangible returns to shareholders of an annual ordinary dividend of three times cover.’