EasyJet: flying high - FT.com Imitation is said to be the sincerest form of flattery. So notch one up to easyJet when low-cost airline rival Ryanair decided to copy its move to assigned seating on all planes this month. Conversely, though, easyJet itself took a leaf out of the Irish carrier's book on Tuesday, when it unveiled a big special dividend (more than doubling its dividend yield to 6 per cent) on the back of a 50 per cent jump in pre-tax profits for the year to end-September. All of which highlights a tricky issue: the extent to which these two discount carriers are similar or different. The biggest question comes on the demand side. Ryanair talks of softness in forward bookings, the main reason behind its two profit warnings and more benign attitude towards customers. Carolyn McCall, easyJet's boss, is having none of that: aside from shifts in holiday dates (such as Easter), booking levels are normal, she says. This may be explained partly by different route networks and exposure to flag carrier cutbacks. A third of easyJet's capacity touches on France, Italy and Switzerland, where available seats overall are still expected to fall this winter (compared with the general intra-European rise), allowing the UK carrier to up its capacity and grab share. True, another 9 per cent is in Spain where capacity is rising. But here, easyJet is pulling back, closing a Madrid base. Factor in, too, the UK airline's better suitability to business travel - more mainstream airports - and first-mover advantage in wooing affluent fliers with secure seating. But the fightback by Ryanair, which retains cost advantages, will have an impact: a third of easyJet's capacity competes with its Irish rival on a city-pair basis although under 5 per cent in terms of direct routes. EasyJet shares have also outflown its rival's and, on 13 times 2013-14 earnings, are no longer cheaper. The gain is deserved. Still, going forward, Ryanair may yet have an edge left.