EasyJet, the budget airline operating from Gatwick and other UK airports, saw its annual profits drop by a quarter after one of the most difficult years on record.
But the airline today forecast growth of 20 per cent.
The company said integration of 120 new planes from Airbus, increasing frequency on its existing routes and expanding to new hubs in Europe meant the outlook was good.
EasyJet delivered pre-tax profits of £52 million for the year to September 30, down 28 per cent after the war in Iraq sharply cut passenger numbers.
The Luton-based carrier also absorbed £7.9 million in costs from the integration of smaller rival Go, which it bought last year.
And it had to write off £9.1 million after passing up the option to buy Deutsche BA from British Airways, saying rigid labour laws in Germany would have undermined its low-cost model.
Chief executive Ray Webster said he was "cautiously optimistic" about the performance in the current year.
Tuesday November 18, 2003
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