easyJet PLC is targeting the £1 billion profit barrier after reporting a record fourth quarter as passengers continued to take to the skies.
The budget airline operator unveiled new medium-term targets alongside a trading update for the quarter ending 30 September 2023.
It set an ambition to deliver pre-tax profit of more than £1 billion with profit per seat between £7-£10.
Return on capital is forecast in the mid-teens, Holidays pre-tax profit is seen over £250 million with capacity compound annual growth of 5% through to 2028.
easyJet also proposed a new shareholder returns policy, starting with financial year 2023 results.
It set a payout ratio of 10% of headline profit after tax, which is expected to rise to 20% in the following financial year.
The firm expects to report a record fourth-quarter pre-tax profit between £650-£670 million with passenger growth of 8% year-on-year.
Ticket yield per passenger rose 9% compared to the year before and ancillary yield per passenger climbed 14%.
Pre-tax profit for the second half is expected between £850-£870 million, giving full-year headline profit between £440-£460 million.
Looking ahead to the first quarter of the new financial year, easyJet expects to be 15% ahead year-on-year.