British carrier EasyJet reported better-than-expected full-year operating profit on Tuesday and upgraded its medium-term target for its holidays business after meeting the previous goal early.

European airlines have reported mixed results in the final quarters of the year, as spiralling costs and repercussions from air traffic control strikes weigh on their balance sheets despite strong demand.

Low-cost carrier EasyJet’s headline operating profit for the financial year ended September grew to £703 million (€800.4 million), above the £669.37 million projected by analysts polled by LSEG.

EasyJet holidays, the company’s high-margin package holiday arm, is now expected to log £450 million in pretax profit by 2030, having hit its previous medium-term target of £250 million this year.

“We are well placed to seize the significant opportunities ahead, and we are confident in achieving our medium-term goal of delivering over 1 billion pounds in profit before tax,” chief executive Kenton Jarvis said in a statement.

EasyJet’s holiday business has helped bolster its results in recent years, as a resurgence in price-controlled packaged holidays for price-sensitive consumers has boosted the airline sector.

The carrier said in July it expected good profit growth despite higher fuel prices and the negative impact of French air traffic control strikes on its earlier results.

EasyJet, which operates an Airbus fleet equipped with CFM engines, has dodged many of the issues that have plagued the airline industry with servicing delays at engine maker Pratt and Whitney. - Reuters

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