Ryanair reports €245m in first quarter profits as it continues ascent despite turbulence
Ryanair’s profits have continued their assent as traffic and revenue increased in the first quarter.
The figures
Total profits for the budget airline in the three months to the end of June grew by 25 per cent on last year to €245 (£173.7m), in line with estimates. Revenues were up 10 per cent to €1.65bn.
In the same period, passenger numbers increased by 16 per cent to 28m thanks to improved load factors, up six per cent to 92 per cent.
Meanwhile, lower oil prices have allowed the low cost carrier to trim up to €250m from its fuel bill for 2017.
Earnings per share rose by 26 per cent to €17.90.
Ryanair said it expects full year profits to be at the upper end of the predicted range of €940m to €970m. Yet, it has also warned it has “almost zero visibility” over what will happen in the second half of the year.
Why it's interesting
The company has been making strides to improve its reputation among customers, and this quarter it continued that process with upgrading its mobile app, make booking easier and cutting the cost of transporting sports equipment. The programme – called "Always Getting Better" – is said to have attracted "millions" of new customers. To paraphrase Michael O'Leary, imagine if he'd started being nice years ago.
Despite this unit costs are expected to fall, thanks to lower oil prices,
The airline has also has also finally – reluctantly – agreed to sell its 29.8 per cent share in Aer Lingus.
What Ryanair Said:
While the group said it was too early to alter its full-year guidance, "the slightly better first half yields will push it towards the upper end of our previously guided range of €940m to €970m net profit".
"We caution however that this guidance, which is 12 per cent ahead of last year's profit, is heavily reliant on the final outturn of second half fares, over which we currently have almost zero visibility.
"Ryanair will continue to pursue its strategy of being load factor active and yield passive for the benefit of our customers, our people and our shareholders."
In short
Ryanair has continued to improve on its passenger load and traffic, taking revenue, profit and earnings per share to a higher altitude.