The airline reported a pre-tax profit of £154m in the year to 30 September, an increase of 181.5% from the previous year.
Total revenue for the year grew by 11.5% to £2.97bn, despite the loss of £27.3m in revenues due to the ash cloud crisis and £20.8m in flight disruptions because of snow.
EasyJet said that the rise in profits is due to a jump in passenger numbers, up by 7.9% to 48.8 million.
The company's advertising spend rose from £47m to £49.8m, equivalent to 89p per seat out of revenue of £53.07 per seat.
The airline has promised to pay a dividend to its shareholders for the first time in the company’s history, but not until 2012. It will be based on profits from the year to September 2011.
Carolyn McCall, chief executive of easyJet, said: "EasyJet's solid financial performance in a tough trading environment demonstrates that the business model is strong.
"EasyJet is strongly positioned to take advantage of the continuing profitable growth opportunities in European short-haul.
"This combined with margin improvement through a tight focus on costs and accessing new revenue opportunities, means that easyJet is poised to continue the strong operating cash generation of the past few years."
EasyJet, which celebrated its 15th birthday last week, resolved a brand licensing dispute with its founder, Sir Stelios Haji-Ioannou, last month.
Sir Stelios will benefit from the dividend payout as he is the largest single shareholder in the airline, owning 38% of shares.
In addition to the results, the budget airline has announced a new ‘flexible fare’ scheme targeted at its business travellers. It will mean passengers have unlimited flexibility to change their flights up to two hours before departure.
.jpg)
.jpeg)