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Ryanair profits lifted by fare hikes

Airline sees rise in bookings after the Olympics

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Low-cost carrier Ryanair has posted a net profit €596 million (£477 million) for the six months to the end of September, up 10 percent on the €544 million it posted over the corresponding period a year earlier.

In a statement on Monday, the airline said record passenger numbers and an average 6 percent rise in its fares helped boost revenue by 15 percent to €3.1 billion. Ryanair also raised its full-year profit expectations to €490 million to €520 million, up from earlier forecasts in the €400 million to €440 million range.

The airline added that strong bookings after the Olympics and a lower than expected aviation fuel bill also helped in profit exceeding expectations. “Our 10 percent profit increase in the first-half combined with traffic growth of 7 percent during a period of high oil prices and continuing recession/austerity in Europe was another robust result," Ryanair said in a statement.

Nonetheless, it expects a tough operating environment to continue as overall fuel costs rose by a quarter to €218 million with the average cost of oil over the period rising to US$98 per barrel from US$83 a barrel.

It also said, "Further airline failures and consolidation are inevitable." Last week Ryanair announced nine new routes and pleaded with the European Commission not block its proposed merger with Aer Lingus.



Ryanair profits lifted by fare hikes
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