Average fares rose 2% to €56, while unit costs fell by 6%. Analysts had predicted three-month earnings of 837 million euros, based on the average of six estimates compiled by Bloomberg. As a few network carriers struggle to make money on their intra-European routes, Ryanair is trying to entice them to effectively outsource those operations.
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Ryanair said it would carry a record 105 million passengers this year, raising its earlier forecast of 104 million people issued only last month.
“Accordingly, we now guide that full year net profit (pre-exceptions) will be towards the upper end of our €1,175m to €1,225m range”.
The airline expects a busy winter period flying nearly all planes that don’t have to undergo scheduled maintenance, chief financial officer Neil Sorahan said. “That gives us the confidence that as we add the traffic and capacity over the winter we will still continue to hit the numbers”.
Profit after tax increased to 1.41 billion euros from 795.0 million euros, a year ago.
The company also revealed plans to open four new bases in Berlin, Corfu, Gothenburg and Milan. further expansion included 119 new routes including a four times daily Dublin to Amsterdam route. We are have raised our FY16 traffic target from 104m to 105m customers due to higher load factors in H2 with Q3 traffic set to grow 17% and Q4 by 22%.
Ryanair has sought to refine its no-frills image by improving its website, targeting primary airports and offering a range of paid-for extras to entice more business passengers and families. 737s jetliners due to come into service through the end of March.
Amid lower fuel costs, increasing passenger numbers and a rise in profit forecasts, things have never looked so “scarily good” for Ryanair, its CEO Michael O’Leary told CNBC Monday.
Fuel costs have been a big tailwind for airlines this year.
“We have taken advantage of occasional oil price weakness this summer to further extend our fuel hedges to 95% cover for FY17 at an ave rate of $62 pbl”. Though talks with airlines have started, he said an accord is unlikely in the next year or two.
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The airline confirmed it will return a special dividend of 398 million euros to shareholders this month after the sale of its stake in Irish competitor Aer Lingus to the global Airlines Group earlier this year.
