Ryanair profits lifted by fare hikes
Airline sees rise in bookings after the Olympics
By CFOWorld.co.uk staff | CFO UK | Published 10:17, 05 November 12
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.
Share:Facebook Twitter Google Plus Stumble Upon Reddit Share This Email this article
CFOs are keen for the chancellor to avoid any uncertaintymore ..
Share float could see company valued close to £1 billionmore ..
However, consumer product giant’s turnover hit by 8.9% negative currency impactmore ..
Networks testing firm benefiting from 4G rollout in Chinamore ..
CFOs used to low interest rates ignore working capital optimisation at their perilmore ..
Concur shows CFOs how to make life easier when the auditors come knockingmore ..