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Post-Olympic holiday rush drives easyJet profits

Budget carrier easyJet has announced an unexpected profit boost from late summer bookings, as sun-starved Brits delayed bookings until after the 2012 Olympics.

After Ryanair, easyJet is the second-largest budget airline in Europe and claims to report a pre-tax profit of between £310 million and £320 million for the year to the end of September.

The airline previously predicted profits of only £280 million to £300 million in comparison. The boost comes after the wettest summer in the UK for 100 years forced Brits to seek sun elsewhere.

Carolyn McCall, easyJet's chief executive, said: “easyJet has had a strong summer performance, which has enabled us to deliver another good year of returns and growth for our shareholders. “easyJet will deliver higher returns and its highest ever pre-tax profit for the financial year ending 30 September 2012, despite absorbing an additional £230m in fuel costs this year.”

The demand for flights dramatically increased following the sporting summer events, with beach routes in particular being the primary focus for holidaymakers. The low-fares airline now expects revenues per seat to improve by more than 5% in the financial year, which is about to end. This is compared to the low-to-mid single digit forecast it made in July.

The company has absorbed an extra £230 million in fuel costs during this financial year and believes it could face another rise of between £30 million and £40 million in the next financial year. Airport costs are also expected increase by around £80 million which might have a knock on effect on flight tickets. If you are planning on going abroad in the near future, flying with easyJet or any other airline, it is a good idea to take out travel insurance before departing. This will protect you financially should you have an accident or be the victim of crime.

Date Created: 04 October 2012

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