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EasyJet boosts dividend

A good financial performance will allow budget airline easyJet (EZJ) to boost its dividend payout ratio.
September 22, 2014

Budget airline easyJet (EZJ) will increase the payout ratio for its dividend from one third of profit after tax to 40 per cent of profit after tax from the 30 September - the end of the 2014 financial year.

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The group said a strong financial performance motivated the decision, but overcapacity issues in the sector could mean easyJet has surplus cash to give to shareholders, instead of its future fleet. That said, easyJet still plans to exercise existing purchase rights for 27 current generation A320 aircraft for delivery between 2015 and 2018, and expects to increase fleet numbers from 226 aircraft to 304 aircraft by 2019.