Ryanair posts record first quarter profit

European low-cost airline Ryanair reported record first-quarter results on Tuesday, saying it had benefited from fuel surcharges levied by rival carriers, but was cautious about the rest of the year and kept its full-year forecast unchanged. Net profit rose 21 percent to 64.4 million euros for the three months to end-June, above the median forecast of 54.4 million given in a Reuters poll of six analysts.
Its traffic was up 30 percent at 8.5 million passengers, in line with a 30 percent increase in capacity to leave average loadings at unchanged 83 percent of capacity. But revenues grew by 35 percent to 404.6 million euros as its 'yield', meaning average fares per passenger, rose 3 percent and total revenue per passenger including ancillary sales increased by 4 percent.
Europe's biggest budget airline said fuel surcharges imposed by flag carriers such as British Airways, Air France, and Lufthansa, had made Ryanair ticket prices more competitive, increasing demand and reducing the need for it to cut fares as it had before oil costs began to soar.
It said it was on track to increase traffic by 27 percent to 35 million passengers this year.
"However, further terrorist attacks in London could have a downward impact on passenger volumes and yields," Chief Executive Michael O'Leary said in a statement, referring to the bombings on July 7 and the failed attacks on July 21.
"Although at this early stage we see no reason to revise our guidance," he said.
Deputy Chief Executive Michael Cawley said the airline was sticking to its forecast for a full-year net profit of 295 million euros ($357 million), a 10 percent rise on the 268 million made last year.
"It's steady as she goes," he said in a telephone interview.
Cawley said that while bookings were down in the immediate aftermath of the London attacks the impact was not significant enough to affect the airline's full-year results.
He said bookings for the key summer quarter - when Ryanair traditionally makes more than half of its annual profit - were "strong and in line with our prediction".