By Jonathan Davies

Easyjet has raised its profit forecast after seeing a boost to trading in August.

The budget airline now expects its full-year profit to be between £675 million and £700m, up from initial forecasts of £620m - £660m.

Easyjet said it raised its expectations after it carried 7.06 million passengers in August, the second month in a row passenger numbers have surpassed seven million.

The airline said the the strength of the pound against the euro was helping to boost passenger numbers.

Paul Moore, an Easyjet spokesman, said: "People have realised that the strong pound against the euro is really making their money go further on holiday."

The news of raised forecasts sent shares up 6.4%, meaning Easyjet's share price has risen by more than 30% over the past 12 months.