British low-cost airline easyJet announced a 45% slump in annual profits, as a row erupted between its Greek founder and top management.
Net profits tumbled to £83.2m sterling in 2007/08, weighed down by a surge in fuel costs, the company said in a statement.
'The economic outlook remains very difficult and highly uncertain. Despite this, easyJet's forward bookings for the first quarter of the financial year are currently slightly ahead of prior year,' it said.
But the results were clouded by clear tension between the airline's management and easyJet founder Stelios Haji-Ioannou - who declined to approve the company accounts.
'I am concerned about the application of certain of the accounting policies adopted by the board in a way that I believe is at odds with current commercial realities and the macro-economic climate,' he wrote in a statement appended to the annual report.
A company statement last Friday revealed that Haji-Ioannou, or Stelios as he is commonly known, had significantly raised his stake in the airline he founded 13 years ago, to pressure the board into paying a maiden dividend despite the economic slowdown.
Stelios, who has increased his holding to 27% from 16% after buying shares from his sister, wants the company to begin paying dividends to shareholders for the first time in its history as it scales back growth plans as Britain heads for recession.
The stake increase also permits Stelios and easyGroup, the parent company of easyJet, to appoint two nominees to be non-executive directors on the company's board.
In the event the directors are not appointed, Stelios reserves the right to appoint himself as chairman.
