Travelers who try to fly using cheap airplane tickets or cheap vacation packages had to be pleased with the news that British no frills airline EasyJet posted an annual profit of 121.3 million pounds ($194 million) for its fiscal year ending September 30th vs. 71.2 million pounds the prior year.
The more profitable a low cost operator like EasyJet is the more likely it will expand its operation and force competition to match its prices on additional routes.
EasyJet commented that its profits would have been even greater if it were not for the 27.3 million pound expense it incurred because of the Icelandic volcanic ash cloud disruption. The airline observed that it is strongly positioned to take advantage of the continuing profitable growth opportunities in European short haul.
EasyJet has been flying for 15 years. The airline announced that it would pay its first dividend in January 2012 and increase the size of its fleet to 220 by 2013 by purchasing 24 planes.
The company was pleased to observe that it now feels that the time is right to set in place a formula to trigger a dividend payment in years when the company is profitable.
The airline sees big potential in attracting more business travelers.
EasyJet fees add up to over 25 percent of its total sales.
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