While Ryanair stuck to a target for net profit for the year to the end of March 2017 to rise to between €1.38 billion and €1.43 billion, the company said there were risks to the forecast.
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Shares in Ryanair dived more than 30% on the surprise Brexit vote last month, with investors concerned the economic uncertainty would hit consumer spending and.
During the period it carried more than 31.2m passengers, up 11% on the same period of previous year, while its unit costs fell by 9%.
Revenue rose 2% to €1.653bn during the period, while ancillary sales increased to 26% of revenues – from 24% for same period past year.
“The absence of Easter in quarter one and on-going market volatility arising from terrorist events, and repeated air traffic control strikes (particularly in France) weakened fares on close-in bookings and caused nearly 1,000 flight cancellations”, said Ryanair’s chief executive Michael O’Leary.
“Traffic rose 11% and load factor improved 2 points to 94% as our Always Getting Better (“AGB”) customer experience programme continues to win new customers and new markets”.
O’Leary again expressed the airline’s disappointment at the vote by the United Kingdom to leave the European Union, and confirmed Ryanair would “pivot” future growth away from the United Kingdom to EU airports over the next two years.
“In the near term we expect that Brexit uncertainty will lead to weaker sterling, slower growth in the United Kingdom and European Union economies and downward pressure on fares until the end of 2017 at least”, the company said in a statement.
The company said there could be further implications if the United Kingdom is unable to negotiate access to the single market and the open skies regulatory framework now in place across the EU.
Average fares, meanwhile, fell by 10 per cent to €39.92.
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In a trading update released to shareholders this morning the airline said that it is maintaining its forecast at the moment but warned of “significant risks” coming down the line after Brexit.
