The no-frills airline Easyjet has given its founder Stelios Haji-Ioannou a rousing send-off by reporting a 78% jump in annual profits.

The acquisition of rival carrier Go, which was completed in July this year, helped pre-tax profits climb to �71.6m for the 12 months to 30 September.

The experience of all discounters... is that demand goes up in times of economic uncertainty

Stelios Haji-Ioannou

The number of passengers carried by the airline over the year rose by nearly 60% to 11.4 million.

Stripping out the Go acquisition, passenger numbers still rose by 43% to 10.2m.

Mr Haji-Ioannou will retain a 22% stake in the airline, but is leaving Easyjet to concentrate on other ventures within the Easy Group, including the internet cafe and car rental businesses.

Rapid growth

Stelios - as he prefers to be known - started Easyjet in 1995, initially operating services from London Luton to Scotland.

Stelios is to concentrate on other businesses in the Easy empire

The distinctive orange-liveried planes now fly to many destinations across Europe, and Easyjet's acquisition of rival Go earlier this year now makes it the Europe's largest low-cost airline by passenger numbers.

"This is the last set of results that I will announce as the company's chairman and I couldn't have hoped for a better send-off," Stelios said.

He is being replaced by Sir Colin Chandler, who is currently Easyjet's deputy chairman and was previously chairman of Vickers Defence Systems.

Seeking value

Stelios told BBC Radio 4's Today programme that he was confident that Easyjet would continue to do well, even if the UK economy slowed further.

"The experience of all discounters, whether they are discount airlines or discount supermarkets, is that demand goes up in times of economic uncertainty," he said.

If they can't get into the key airports, life's going to be a lot tougher

Chris Tarry, aviation analyst

"As people are looking for more economic ways to spend their money they go for cheaper options," he said, adding that companies were also more likely to shun business class fares and seek out cheaper options.

Some analysts cast doubt on the outlook for low-cost airlines if they do not manage to loosen the stranglehold of full-price carriers on flights from major airports, such as London's Heathrow.

"If they can't get into the key airports, life's going to be a lot tougher," said Chris Tarry, an aviation analyst at Commerzbank Securities.

Revenues up

Easyjet said total revenues jumped 55% to �552m, and stripping out the Go purchase revenues grew 36% to �486m.

But average net fares slipped 4% to �46, and Easyjet shares closed down 53 pence, or 13.6%, to 337p on worries over future fare pressure.

Easyjet said talks with Airbus over the supply of 120 new planes were at "an advanced stage".

The airline surprised many industry observers last month when it switched from its original supplier Boeing.

It also said its integration of Go was now "well advanced".

Earlier this month Easyjet's main rival, Ryanair, also reported a hefty 71% in profits during the first half of its financial year.