EasyJet founder Stelios Haji-Ioannou today stepped down as chairman on a high note as his no-frills airline reported a 78% surge in yearly profits to £71.6m.

The 35-year-old described the results, which beat City forecasts of between £57m and £66m, as the perfect send-off, after a year in which the company bought rival operator Go for £374m.

Mr Haji-Ioannou, a self-described 'serial entrepreneur' is stepping down to pursue other businesses, including easyInternetCafe, rental business easyCar and a new project easyCinema. But he will retain a 22% stake in easyJet, Europe's biggest discount airline.

'I will have my hands full with other easyGroup activity, but will continue to watch from afar with a close and fond interest,' he said of the company he started in 1995 with two planes.

Today's figures show the number of passengers flown by the group increased 59.5% on a year earlier to 11.4 million, boosted by 11 new aircraft and a two-month contribution from the 27 Go aircraft. Revenues for the period ending September 30 surged 55% to £552m despite a 4% fall in the average net fare to £46.

EasyJet confirmed that negotiations with Airbus on an order for 120 planes were at an advanced stage, after easyJet surprised the industry in October by switching from the traditional low-cost airline supplier, Boeing.

The deal is likely to sustain 10,000 UK jobs because Airbus is part-owned by BAE Systems with staff at Filton, near Bristol, and Broughton, north Wales. The airline said it was also close to choosing the engines for the new planes.

The company said it could pay for a major aircraft order without seeking additional funding, but that it might seek a fresh cash injection in the longer term.

'We have no immediate or short-term plans to raise additional capital,' the chief executive, Ray Webster, told reporters. 'Clearly in time, as we scale the business I'll expect we'll be coming back to the market to strengthen the balance sheet... but that's some way off.'

Rapid growth has brought teething problems, however. A rash of cancelled flights over the summer, for example, raised fears it was struggling to integrate Go. While easyJet shares have outperformed those of flag carrier British Airways by 17% since the start of the year, they have lagged Ryanair, its closest discount by 23%. They closed at 390 pence on Monday, valuing the business at around £1.5bn.

The aerospace veteran, Sir Colin Chandler, who joined the firm as deputy chairman, will take over from Mr Haji-Ioannou.