British no-frills airline Easyjet has announced soaring annual profits, in marked contrast to Irish rival Ryanair which recently shocked markets with another warning over its earnings.
Easyjet said net profit surged 56 per cent to STG398 million ($A688.11 million) in the year to September 30 compared with the group's performance in 2011/12 - as increased demand for its flights across Europe offset higher costs.
It added in a statement that STG308 million would be returned to shareholders via dividend payments, helping Easyjet's share price to rally on Tuesday.
"Easyjet stock soared after confirming profits that beat arch rival Ryanair," said Toby Morris, senior trader at CMC Markets.
"In stark contrast Ryanair have recently been forced to concede that their willing portrayal as the sector villain has to be addressed, vowing to cut extraneous fees and improve customer service after cutting its full year profit forecast."
Easyjet added that annual pre-tax profit jumped 50.9 per cent to STG478 million, in line with the airline's own raised forecast given last month.
Revenue rose 10.5 per cent to STG4.258 billion in the reporting period.
Costs excluding jet fuel grew to STG2.598 billion, while fuel charges climbed to STG1.182 billion.
"As evidence of our continued confidence in the future prospects of the business, the board has recommended to return STG308 million to shareholders through the combination of an ordinary and special dividend," Easyjet chief executive Carolyn McCall said in the earnings statement.
Easyjet shares jumped 6.85 per cent to 1,342 pence in late trading on London's benchmark FTSE 100 index, which was down 0.58 per cent at 6,684.77 points overall.
Easyjet had said in October that annual profits would be at the upper end of expectations, and cited keen demand for flights during July and August.
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