British low-cost airline easyJet said yesterday annual earnings would be slightly better than it had expected following a strong performance in September despite heightened airport security.

EasyJet shares rose 1.3 per cent to 504-1/4 pence by 0820 after it said it expected pretax profit for the year ending September to be slightly ahead of earlier guidance for a 40-50 percent rise.

Sentiment for airlines has improved in recent weeks following a fall in oil prices and after restrictions on hand-luggage at London airports were eased.

"It is broadly encouraging. Short-haul current trading trends are quite positive and we don't see any long-lasting effects from the security measures," Oriel Securities analyst Gerald Khoo said. Rival Ryanair upped its profit guidance last week because the cost of hedging its fuel needs was lower than expected following a fall in oil prices.

EasyJet said total revenue for the year to September 30, 2006, was up 20.7 per cent to £1.62 billion.

The airline said revenue in September was ahead of expectations.

The carrier's load factor - a measure of how well it filled planes - was 86.5 per cent in September.

The company said passenger numbers rose 9.8 per cent in the month.

British Airways shares also rose this week after it said its annual fuel bill would be lower than expected.

However, BA said traffic in September had been hit by heightened security at London airports, which restricted the size of hand luggage. The restrictions were eased late last month.

EasyJet cancelled 469 flights in August because of the heightened security, imposed after police said they foiled a plot to bomb airliners.