EasyJet made a record profit this summer as demand continues to bounce back following the pandemic.

The budget airline is expecting profit before tax between July and September to come in between £650m and £670m.

Passenger numbers have risen by 8% when compared with the same period last year, with fares increasing by 9% over the same period.

Be the first to get Breaking News

Install the Sky News app for free

In an update to investors, easyJet also confirmed it is planning to resume paying dividends from early next year.

Initially, 10% of annual profits after tax will be distributed to shareholders from early next year – and this is expected to rise to 20% in 2025.

Orders for 157 new aircraft from Airbus have also been placed, but this investment is subject to approval from shareholders.

This could be challenging as easyJet founder Stelios Haji-Ioannou – who has a 15% stake in the airline – has previously questioned whether expensive new planes are needed.

UK economy grew by 0.2% in August, official GDP figures show

Ex-Barclays CEO fined £1.8m after misleading statements over his links to Jeffrey Epstein

Energy bills may rise by £17 a year to prevent suppliers going bust

“We have delivered a record summer with strong demand for easyJet’s flights and holidays with customers choosing us for our network, value and service,” chief executive Johan Lundgren said.

In the medium term, Mr Lundgren revealed easyJet is aiming to achieve a profit before tax of £1bn – “driven by reducing winter losses, upgauging our fleet and growing easyJet Holidays”.

Read more business news:
UK economy grew by 0.2% in August
Energy bills may rise by £17 a year
Ex-F1 boss Bernie Ecclestone admits fraud

Flights to Israel suspended

EasyJet is among the airlines that have suspended flights to Israel following an unprecedented attack by Hamas last weekend.

Operations from Tel Aviv have been suspended, with all flights cancelled until 17 October at the earliest.

The company says it is reviewing the situation on the ground on a daily basis.

Speaking to reporters, Mr Lundgren said easyJet wanted to resume flights to Israel as soon as possible – but could not give a firm date.

British Airways had continued to fly to Tel Aviv until Wednesday, but suspended the route hours after one of its planes diverted back to London because of security concerns – just before it was due to arrive at Israel’s Ben Gurion Airport.

Related posts:

Buyout tycoon Hands plots £300m takeover of housebuilder Hopkins Homes Warning of ‘seismic’ hit to energy bills as government urged to take action Sunak was already under pressure from cost of living crisis – the GDP figures might force him to act Made.com drafts in advisers to assemble balance sheet repair job ‘We will keep going until we get a negotiated settlement’, vows union boss Mick Lynch amid rail strikes ‘Doom loop’ as pound is pounded: Five reasons why the currency slump matters to you Watch Ian King live CBI hires business ethics consultancy to spearhead survival bid Average mortgage rate on five-year fixed deal slips below 6% for first time in months Latest setback for world’s most indebted property developer as chairman reported taken by police Liverpool FC have a new minority shareholder Is the UK bad at big infrastructure projects?