Ryanair profits up 17%
01.11.10
Ryanair announced a 17% increase in half year (to September 30) profit to €452m today. Revenues rose 23% to €2.2bln as traffic grew by 10% to 40.1m passengers and average fares rose by 12%. Unit costs rose by 13% (excluding fuel they rose by 4%) as its average sector length increased by 12%.
Announcing these results Ryanair’s CEO, Michael O’Leary, said: ‘17% increase in half year Net Profit to €452m is testimony to the robustness of Ryanair’s lowest cost / lowest fare model that continues to deliver traffic and profit growth even during a deep recession. We continue to gain market share across Europe from the big three high fare flag carrier groups led by Air France, BA and Lufthansa . We expect this trend to continue.'
Average fares this summer rose by 12% to €44 in line with a 12% sector length increase. Unit costs increased by 13% primarily due to the 12% growth in sector length and higher fuel costs. Ryanair's fuel bill rose by 44% to €660m due to the increased level of activity and higher prices. Unit costs excluding fuel rose by 4%, and sector length adjusted they fell by 8%, as the budget airline lowered aircraft ownership, airport and handling costs.
Cash on hand at September 30th rose by €212m to €3.026bln. On October 1 the airline paid a €500m one-off dividend to shareholders following their AGM approval. This brings the total funds returned by Ryanair to shareholders over the past 3 years to almost €850m.
The airline said its outlook for the remainder of the fiscal year 'remains cautious as we have little visibility on Q4 yields. Based on Q3 forward bookings we now anticipate that winter (H2) yields will be slightly better than previously forecast, so we expect the full year yield increase to be at the upper end of the +5% to +10% range previously guided. Given these somewhat better winter yield forecasts, we now believe that full year Net Profit will exceed the upper end of our previous forecast range (€350m to €375m) and will now finish (subject to Q4 yields) within a range of €380m to €400m.’
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