Ryanair Profits Reach €18m

An eight per cent rise in average fares lifted Ryanair’s pretax profit to €18.1 million for the three months to December 31st, up 21 per cent on the same period last year. Revenues rose by 15 per cent to €969 million as traffic grew 3 per cent to 17.3 million passengers. The airline said bookings from passengers in the UK, Germany and Scandinavia were “particularly robust”. The airline’s better-than-expected numbers helped it absorb an €81 million hike in its fuel bill, due to rising oil prices.The airline also raised its profit forecast to €540 million after tax for the year to March, which would represent a 7 per cent increase on last year. “We saw strong demand out of the UK, out of Germany and out of Scandinavia and that has gone straight to our bottom line,” chief operating officer Michael Cawley said. “We are still struggling to understand it, to be honest.” However, he acknowledged sales were not as buoyant in southern Europe, with Spain in particular “very weak” and fare growth in Italy flat.Next year fares will continue to rise although capacity will likely only grow by 2-3 per cent in the financial year to March 2014, Mr Cawley said, down from the 4 per cent rise forecast in the current year, due to the lack of new aircraft deliveries.