Andy Harrison, chief executive of easyJet, reported record profits at the no-frills airline yesterday.

The carrier, founded by the entrepreneur Stelios Haji-Ioannou, delivered a 58 per cent profit rise to £201.9 million after flying 37.2 million passengers in the year to September 30, a 13 per cent increase.

The company issued a bullish outlook on its prospects next year, despite high fuel prices and increases in air passenger duty.

Mr Harrison said: “In many ways, we’re looking forward to a more difficult environment, because we know we’re very well positioned to out-compete our competitors”.

The company expects profit for the current financial year to increase 20 per cent, with the weakness of the dollar partially offsetting high fuel costs, and added charges for baggage and checking-in boosting revenue.

EasyJet’s optimistic assessment came as the Civil Aviation Authority set out its proposed price caps for charges levied on airlines by BAA, the company that holds a monopoly on running Britain’s big airports.

Mr Harrison called for the system of airport regulation to be reviewed urgently.

EasyJet’s revenues rose by 11 per cent to £1.79 billion.

Improved cost controls helped to offset rising fuel charges and the doubling of air passenger duty for UK customers.

Operating costs per seat, not counting fuel, fell by £1.81 to £26.55, because of lower aircraft ownership and maintenance costs and the weaker dollar.

EasyJet also followed Ryanair, its rival, in revealing a surge in its revenue from “ancillary charges” – added extras such as priority boarding and fees for partner services, such as hotel bookings and car hire.

The airline said that its speedy boarding product, which, for up to £7.50, gives passengers priority in boarding the aircraft , had been the biggest contributor to its recent improvement in ancillary revenues.

Ancillary charges increased 30 per cent to £171 million, or £3.85 per seat.

Charges for excess baggage also soared 31 per cent.

Load factor, a measure of how full aircraft are, decreased by 1.1 percentage points to 83.7 per cent – a development that will anger environmentalists.

EasyJet said: “The fuel environment remains challenging; however, we believe the easyJet business model is resilient and well-positioned for success.”

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