EasyJet PLC (LON:EZJ) reported lower half-year profits and forecast declining revenue but wooed shareholders with a 22% rise in its dividend.
The budget carrier blamed currency volatility for pre-tax losses of £24mln in the six months to March 31 versus a profit of £7mln a year ago. At constant currencies, profits declined to £5mln from £7mln.
It expects third quarter revenue per seat to decline by around seven percentage points, given the timing of Easter and the effects of terrorism in Brussels.
EasyJet expects revenue per seat at constant currency for the second half of the financial year to decrease by low to mid-single digit percentage points. Bookings are currently in line with the prior year.
In addition, exchange rate movements are likely to have around a £20mln adverse impact compared to the six months to September 30 last year 2015 and are likely to have around a £55mln adverse impact compared to the 12 months to the end of September 2015.
But the Luton-based airline said it was increasing its interim dividend to 55.2p from 45.4p a year ago.
Passenger numbers during the period rose 7.4% to 31 million.
Chief executive Carolyn McCall said: "Underlying consumer demand has been strong with UK beach traffic providing a healthy start to the half and easyJet's biggest-ever ski season helping to increase passenger numbers and revenue during the first half.
"We are confident that over the full year we will again increase passenger numbers, revenue and profit."