Low-cost airline EasyJet posted a 56 per cent jump in annual profits as expected yesterday and said it would expand its fleet with more Airbus planes as strong demand offsets high fuel costs.

EasyJet converted options on 52 A319 aircraft into orders and took options over a further 75 A320 aircraft, bringing the value of planes it has on firm order to more than $4 billion.

The budget carrier, Europe's second-largest after Ryanair, said pretax profit for the year to end-September 2006 was £129 million, up from £83 million a year ago.

The result was in line with analysts' expectations of £130 million, according to the median of 15 forecasts from Reuters Estimates.

"Our profit growth was driven by a 34 per cent increase in ancillary revenues per seat, significant improvements in passenger yields and a continuing reduction in our non-fuel unit costs," chief executive officer Andy Harrison said in a statement.

"Today's Airbus order underpins our future growth and we expect to increase capacity in 2007 by 15 per cent."

EasyJet said on October 6 it expected pretax profit for the year ending September to be slightly ahead of earlier guidance for a 40-50 per cent rise.

A strong summer and new routes helped offset a 33 per cent rise in unit fuel costs for the year and the cancellation of 469 flights in August because of heightened security, imposed after British police said they foiled a plot to bomb airliners.

Mr Harrison said current trading is in line with the company's expectations.