EasyJet has British Airways in sight

PROFITS at easyJet have plunged after a year of expansion, despite a second-half fightback, but more growth in 2004 will soon see it carrying more passengers than British Airways.

'We will be there this [financial] year,' said chief executive Ray Webster, as he predicted growth from 20m passengers last year to 24m in the current 12 months. That will see it fly past BA on UK and European routes, a target which budget rival Ryanair says it expects to hit by Christmas.

For the year to end-September, easyJet today reported a £52m pre-tax profit, down 28% on last year. That was despite a 69% rise in revenue to £932m and 79% growth in passenger numbers. Excluding the Go acquisition, the underlying passenger rise was 27%.

But the figures mask a recovery from a terrible first half, in which it made a £48m loss as travellers stayed at home in the uncertainty before and during the Iraq war. Full-year figures were also hit by further Go integration costs (nearly £15m) and the £9m charge for walking out on an option to buy BA's German interests.

'Profits were up 44% in the second half and yields (the money made per passenger) are firming up,' said Webster. 'We have every reason to be optimistic.' The chief executive, now running the airline after the withdrawal of founder Stelios-Haji-Ioannou, also took a swipe at Ryanair boss Michael O'Leary.

The Irishman, facing an investigation over alleged illegal subsidies paid by Charleroi airport in Belgium-has tried to refer easyJet's new deal with Berlin to Brussels investigators. 'He should stop bleating and trying to drag everyone down with him,' said Webster.

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