EasyJet has made record summer profits as demand for travel continues to increase after the pandemic.
The budget airline is expecting pre-tax profits for July to September to come in at between £650m and £670m.
That's after an 8% rise in passengers and a 9% rise in fare prices when compared with the same period last year.
In an update to investors, the airline 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.
Growing the fleet
EasyJet has also placed orders for 157 new aircraft from Airbus.
In a statement to investors, CEO Johna Lundgren said:
"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.
"This performance has demonstrated that our strategy is achieving results and so today we have set out an ambitious roadmap to serve more customers and deliver attractive shareholder returns, underpinned by a continued focus on costs and operational excellence.
"Our new medium-term targets provide the building blocks to deliver a PBT greater than £1 billion. This will be driven by reducing winter losses, upgauging our fleet and growing easyJet holidays.
"As part of our commitment to shareholder returns, the Board intends to reinstate dividends commencing with the FY23 results.
"We have also reached a proposed agreement with Airbus for an additional 157 aircraft order and a further 100 purchase rights.
"This will enable easyJet’s fleet modernisation and growth to continue beyond 2028 while providing substantial benefits including cost efficiencies and sustainability improvements."
FTSE 100
The UK's top share index, the FTSE 100, was up five-points at 7,649 shortly after opening this morning.
Brent crude futures were up 1.20% this morning at $87.03 a barrel.
Companies reporting today
Ashmore Group has a Q1 Assets Under Management Statement.