EasyJet will relaunch its package holiday business in a bid to fill the void left by the collapse of Thomas Cook earlier this year.
In a statement on the decision, EasyJet said: "The total European package holidays market is worth around £61 billion per year. The UK alone is a £13 billion market and has grown by 6% annually.
"The way that customers are taking holidays is changing and we know customers want holidays with various durations and not the traditional seven and 14 nights."
Figures show that the airline flies around 20 million people to Europe annually but only 500,000 book accommodation through it.
The airline's decision comes as it reported a 26% fall in pre-tax profits to £427 million for the year to 30 September with the group's net profit dropped from £358 million to £349 million.
Overall revenue rose 8.3% to £6.4 billion as passenger numbers increased 8.6% to 96.1 million, during the period. Its operating profit for the year was posted at £466 million, a slight increase from £463 million last year.
In addition to this, EasyJet is planning to become "the world's first major" net-zero carbon airline by offsetting carbon emissions.