BUDGET airline easyJet has reported a fourth consecutive year of record pre-tax profits.

The 21.5 per cent increase to £581m for the year to September 30 was slightly ahead of the top end of group expectations.

Bosses said it showed the firm was winning the battle for the skies with both national flag carrier and budget rivals.

Carolyn McCall, chief executive, said: "We have opened up clear blue sky between us and our competitors - both legacy and low cost.

"More customers are trying us, liking us and coming back to us.

"This is testament to our winning formula of low prices and warm, friendly service, as well as our unrivalled network."

The airline said it had increased the proportion of bookings made by existing customers to 57 per cent, up from 50 per cent in 2010.

That meant more than 37 million passengers were rebooking each year compared with 25 million four years ago.