Easyjet raised its full-year profit outlook yesterday to forecast growth of up to 21 per cent after a record number of August passengers turned to the British low-cost airline to get away.

Easyjet said it now expected full-year profit before tax to be in a range of £675 million to £700 million for the year to the end of September, compared with previous guidance of £620 million to £660 million.

The group recorded full-year profit of £581 million in its 2014 full year. Easyjet said the recent strong demand, particularly for beach holidays, had helped the group to recover from a tricky year when it endured disruption on its network in April and suffered from the impact of two fires at Rome’s Fiumicino airport.

The upgraded outlook will also reassure investors that Europe’s second biggest budget airline after Ryanair is coping with the tougher challenge from its Irish rival which has polished up its image and started adding more main city airports to its routes.

Chief executive Carolyn McCall said the figures demonstrated the strength of the airline, with leading digital innovations complimenting its strong route network.

“This platform meant that Easyjet was best placed to maximise the strong late summer demand from UK passengers to get away to beach and city destinations across Europe and will enable the airline to set new records for full year revenue and profit,” she said.

Ryanair reported earlier this week that its August traffic grew by 10 per cent to 10.4 million.

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