AN airline says it remains well positioned to overcome market difficulties – despite warning the sunken pound will take a £105m bite out of profits.

Easyjet made the bullish call after revealing increased passenger numbers pushed sales higher.

It added “resilient” demand across Europe had warded off the threat of competitors and the impact of the Berlin Christmas market terror attack.

According to its latest financial results for the three months to December 31, which were released yesterday, Easyjet carried 17.4 million passengers in the period.

The number represented an increase of 8.2 per cent on the same time a year ago, with total revenue rising from £930m to £997m.

Carolyn McCall, chief executive, said the business had enjoyed a “solid” quarter, adding bookings for the next three months were ahead of last year.

Ms McCall acknowledged sterling’s weakness would deliver an anticipated £105m hit to annual pre-tax profits, but said the company’s increasing focus on catering for holidaymakers’ tastes across Europe would leave it well placed.

She said: “Revenue, cost and passenger numbers are in line with expectations, despite a tough pricing and operating environment.

“Consumer demand remains strong (though) the weakness of sterling and impact of fuel combined are £35m worse than previously expected.

“But we have made progress in reducing costs in areas where we have more control, such as engineering, maintenance, non-regulated airports and overheads.

“We continue to grow with purpose in core markets and our focus has been to invest to deliver long-term sustainable, profitable growth by strengthening our leading positions at Europe’s biggest and most popular airports.”

Last year, The Northern Echo revealed the carrier was analysing potential new routes at Newcastle Airport after launching flights to Berlin and Las Palmas.

Ali Gayward, Easyjet’s UK commercial manager, said the Berlin services could yield further routes to destinations such as Paris and Venice, as the carrier seeks to further tap into the city break boom.

She told the Echo: “The market is cyclical but what we have seen, particularly over the last two years, is a resurgence in performance in Newcastle.

“We don’t start routes for the sake of it, we match them to the evolving demand and we hope Berlin could be a catalyst for more.

“It’s really important for us to understand what the people of the North-East want.”