Ryanair First-Quarter Profit Gains 25% as It Plans Capacity Jump
Ryanair said fiscal first-quarter earnings rose 25 per cent and that full-year numbers should be toward the top end of forecasts as Europe’s No. 1 discount carrier boosts winter capacity.
Net income rose to €245.1 million ($380 million) in the three months through June from €196.8 million a year earlier, Dublin-based Ryanair said Monday. Analysts had predicted £245.5 million.
Earnings for the whole of fiscal 2016 are likely to be at the higher a €940 million to €970 million range forecast earlier, according to a statement. Ryanair said it will reduce plane groundings this winter as it seeks to tempt passengers from network airlines such as Deutsche Lufthansa AG, with new routes in Germany, Sweden and Israel planned this year.
“It’s been a good summer, bookings are strong,” chief financial officer Neil Sorahan said in an interview. “We’ve got a slightly better first half but we’re fairly cautious into winter. We’ve got very limited visibility on our bookings.”
Ryanair said it will remain focused on pricing tickets to fill its planes rather than maintain yields, and that a fare decline in the first quarter, while moderating in the summer, is likely to take hold again in the winter as capacity grows.
Chief executive officer Michael O’Leary has sought to broaden Ryanair’s customer appeal by toning down his sales pitch and offering a range of paid-for extras to entice more business passengers and families. The carrier will role out a new website in October.
Ryanair boosted passenger numbers 16 per cent to 28 million people in the first quarter and increased its traffic target for full-year 2016 by 3 million to 103 million people.
Bloomberg News, edited by Hospitality Ireland