(Bloomberg) -- EasyJet Plc proposed to more than double its dividend payout for this year and said it’s making “strong progress” toward its medium-term targets, helped by robust demand for its package holiday offerings.
The airline’s board has recommended an ordinary dividend of 12.1 pence a share, compared with 4.5 pence a year earlier, EasyJet said in a statement Wednesday. The company will pay out 20% of the dividend in March, it said.
“We’ve had a record summer, we managed to reduce the winter losses and the holiday business is growing phenomenally,” Chief Executive Officer Johan Lundgren said in an interview with Bloomberg TV. “On practically every metric, we have been able to report very strong progress.”
Shares rose as much as 3.3% and were trading 2.9% higher at 8:02 a.m. in London.
EasyJet’s all-Airbus SE fleet has managed to avoid the supply chain problems that have hamstrung its low-cost rivals. Ryanair Holdings Plc is struggling to get deliveries of its Boeing Co. 737 Max jets while Wizz Air Holdings Plc has several of its A320neo jets grounded due to issues with their Pratt & Whitney engines.
Lundgren said the company’s choices on engine and plane type were a “better alternative” than other airlines.
EasyJet reported profit before tax of £610 million ($768 million) in the twelve months through September, in line with analysts’ estimates. The airline predicted its holiday business will grow by 25% next year, highlighting robust demand for hassle-free package vacations that have boomed in the UK.
The results were the last for Lundgren before Kenton Jarvis, the airline’s chief financial officer, replaces him early next year. Lundgren has led the carrier for seven years.
EasyJet is the last of the major European carriers to report earnings for the quarter. The stock has gained almost 10% this year, compared to Ryanair and Wizz which have lost 4% and 40%, respectively.
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