British budget airline EasyJet has reported a rise in profits, but has also warned it will become more difficult to pass higher fuel prices on to passengers.
The group reported a 31.5% increase in underlying profits to £248m in the year to September 30, which was at the upper end of expectations, after a sharp rise in the number of business passengers.
It said around 45% of winter seats were already booked - about the same level as last year - but warned that weak consumer confidence across Europe would slow the rate at which higher costs can be passed on to passengers.
The group also announced it would trial allocated seating on selected routes in the spring, following a similar move by rival Ryanair.
Total revenue for the year was up just over 16% to £3.45 billion, but fuel costs rose by €100m. Passenger numbers rose 11.8% to 54.5 million and load factor improved by 0.3 points to 87.3%.
EasyJet is to pay a special dividend of 34.9 pence per share, in addition to a 10.5p final dividend.
