easyJet Pre-Tax Profit Jumps 18 Percent

easyJet said demand for European flights was resilient and it was ordering 36 more Airbus A320s to drive expansion after reporting an 18 percent jump in annual profit.

easyJet reported pre-tax profit for the 12 months ended September 30 of GBP£686 million pounds, as passenger numbers rose 6 percent to 68.6 million.

"Our outlook for the longer term is positive," chief executive Carolyn McCall said in a statement.

"We will see passenger growth of 7 percent a year, sustaining margins through rigorous cost control and the benefit of fleet up-gauging, resulting in positive profit momentum."

McCall said, however, that a series of shocks with the potential to hit travel, such as the attacks in Paris on Friday and the Russian plane crash over Egypt in October, were having an impact.

"You will always see a cooling off period but you also see quite a quick resumption... again," McCall said when asked about travel to France.

Overall, the company said customers had continued to buy tickets, with forward bookings in line with last year.

For the winter, easyJet's bigger low-cost rival Ryanair has talked of a price war in the European market, as airlines raise capacity and compete against each other in a lower fuel cost environment.

But easyJet forecast only a "slight decline" in revenue per seat on a constant currency basis for the six months to the end of March, challenging Ryanair's view.

easyJet said it would maintain profit momentum by boosting passenger numbers 7 percent a year, controlling costs and exploiting its slots at major airports, an area where Ryanair is playing catch-up having historically focused on minor airports.

easyJet is trying to expand in France, which accounts for an estimated 20 percent of its capacity, and it could see a short-term setback after Friday's attacks in Paris, which killed at least 129 people and were claimed by Islamic State.

"Our view is that demand may be soft in the coming months as a result of the attacks but, as previous similar events have shown, this will recover quickly," Cantor analyst Robin Byde said.

easyJet said the new planes reflected its robust trading and the profitable opportunities it sees in its markets, adding that current market expectations for its 2016 financial year were in line with the board's forecast.

The new aircraft order was part of a decision to exercise rights to 30 A320neos in a 2013 deal with Airbus, plus an order for six more current generation A320s.