easyJet has recorded an 18% year-on-year increase in earnings, which totalled £703m in the 12 months to 30 September.

The airline and holiday firm also saw its profit before tax jump by 9% to £665m, while its airline division recorded a profit of £415m.

Furthermore, its holiday division recorded a profit of £250m, reaching its medium term target early, while revenue increased by 9% year-on-year to £10.1bn.

easyJet said that while the industry continued to see inflationary pressures across the cost base, its management had retained focus on improving operational facility by increasing punctuality.

Chief executive officer at easyJet, Kenton Jarvis, said: "Since setting our medium-term targets in 2023 we have made significant progress, delivering a 46% improvement in profit before tax, adding 9% this year through the continued, successful execution of our strategy. easyJet holidays is today launching an even more ambitious goal having achieved its target early.

"Our focus on investing in operations and enhancing customer experience, providing the warmest welcome in travel, has delivered improved punctuality, enhanced customer satisfaction and cost efficiencies this year."

In its outlook, easyJet said it was progressing towards a medium-term target of profit before tax over £1bn.

The airline said its available seat kilometres capacity is set to grow by 7% in the current financial year, while its holidays division customers are set to rise 15% from a base of 3.1 million customers.

It added that its forward bookings for the first quarter are currently 81% sold, while its holidays for the first half of the year are 80% sold.

However, Q2 sales are currently at 26% sold, which easyJet said reflects a challenging profit performance recorded in the previous winter season.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said that the airline had delivered another "strong summer".

He added: "The outlook for the new year brought some mixed news. Winter losses are set to get worse, coming in around £30m behind market expectations, as ongoing investment in its new strategic bases in Milan and Rome continues.

"Looking past this, management’s hoping to grow capacity by around 7% this year, or nearly double the sector average, and first-half bookings are already tracking ahead of the prior year. With a net cash pile of over £600m, there’s also plenty of cushion if the market experiences some turbulence."

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