Profit Rise (estimated @ 970m Euros)

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Profit Rise (estimated @ 970m Euros)

Post by Ryanair Ltd. on Tue 26 May 2015 - 14:26

Ryanair's profit after tax would reach between €940-970m this year.
Analysts had forecast a previous profit of €866m.
Revenues for the year rose by 12% from €5.037 billion to €5.654 billion

Ryanair said its fares would be "broadly flat" in the six months to September. Its main rival EasyJet has said revenue per seat would be down by about four percentage points in the three months to June.

The airline said it expects to increase passenger numbers by 10% in the year to March 2016, with around half of this at primary airports and about half at smaller regional airports. Forward bookings to September are on average 4% ahead of last year, it said.

"Our Always Getting Programme is transforming our customer experience, our service, and the way we listen and respond to our customers. We have won substantial traffic and share gains in all markets," commented the company's chief executive Michael O'Leary.

He noted that the airline is now the number one or number two airline in most EU countries, except France and Germany where it is a rapidly growing number three.

Mr O'Leary said that while Ryanair's traffic growth will be strong, it would be "foolish" not to expect some "irrational" pricing response from competitors who can not compete with it. He said that Ryanair will remain "vigourously load factor active/price passive".

He said that even with the benefit of lower oil, aircraft and financing costs the airline may suffer periods of fare/yield weakness, especially in the second half of its financial year.

"This is why our yield guidance remains cautious at broadly flat in H1 but down 4% to 8% in H2 for a forecast FY yield decline of 2%," he added.

Ryanair again declined to comment on whether it planned to accept an offer by British Airways owner IAG for its 30% stake in Aer Lingus.

The bid has stalled as IAG waits for the Government, which owns 25% of Aer Lingus, to commit to selling. The Government has said Ryanair's attitude was key to its decision.

"The board of Ryanair will consider any offer from IAG on its merits, if or when it is received," Ryanair's chief executive Michael O'Leary said.

Mr O'Leary also said today that the cost of the French air traffic strikes earlier this year to Ryanair was "around €5m".
Ryanair Ltd.
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