EasyJet Plc has announced plans to pay its first-ever dividend after a rebound in demand for travel boosted full-year profits by some 70 per cent.
Net income rose to £121.3 million in the 12 months ended September 30th from £71.2 million a year earlier, chief executive Carolyn McCall said.
Analysts had anticipated a profit of £114 million from EasyJet, Europe's second-largest discount airline.
Ms McCall, making her first strategy statement since taking charge in July, said EasyJet will sharpen its focus on corporate travel and seek a profit of £5 per seat.
Stelios Haji- Ioannou, the airline's founder, has been lobbying her to return cash to investors and adopt a business model that would slow growth while focusing on busier, non-seasonal destinations.
"We want to target more business customers," Ms McCall (49) said.
"EasyJet is strongly positioned to take advantage of the continuing profitable growth opportunities in European short-haul."
The airline said it will begin to pay a dividend in years when it is profitable. The first payment will be due in 2012 for the current fiscal year, based on dividend cover of five times.
EasyJet shares jumped 12 per cent on October 6th, the most in 20 months, after the company said full-year pretax profit had beaten a £150 million top-end forecast issued on May 11th.
Full-year sales advanced 11 per cent to £2.97 billion as EasyJet added planes and opened new bases. Net income was equal to 28 pence a share, up from 16.6 pence a year earlier.
EasyJet, founded 15 years ago this month, is benefitting from a surge in demand that's led airlines across Europe to announce higher earnings and revise outlooks.
Ryanair said on November 1st that net income will increase to as much as €400 million in the 12 months ending March 31st after second-quarter profit jumped 32 per cent on rising traffic and fares.