EasyJet holidays expects 25% rise in customers this year after profits rose by 40% or £12 million to £43 million in the three months to December 31.

Revenue for the budget airline’s in-house tour operation rose by 36% year-on-year to £247 million.

EasyJet is on course to achieve a medium target of £1 billion in annual profits as traditional winter losses were cut.  

Overall losses in the quarter fell by £65 million year-on-year to £61 million as passenger carryings rose by 7% to 21.2 million based on capacity of 24.1 million seats.