Monday, 7 November 2011

Ryanair set to make higher profits than forecast

Budget airline Ryanair has raised its full-year net profit forecasts by 10 per cent on the back of strong results in first six months of the financial year. The strong figures show increased revenues of 11 per cent per passenger due to higher average fares and additional fees for items such as reserved seating and online payment charges.

The figures remain particularly impressive from a business point of view as operating costs have risen more than twice as quickly with fuel prices being the main contributor to overall costs. Ryanair have since announced that they are grounding planes as a response and reducing traffic by 4 per cent over the second half of the financial year.

Ryanair Chief Michael O'Leary commenting on the news said - “Ryanair’s capacity cuts will mean that traffic in H2 will fall by 4 per cent. In November, for example, we expect to report a traffic decline of 10 per cent or almost 500,000 passengers as we ground up to 80 aircraft due to higher oil prices.”

Despite this the full year profits have been estimated at €440m, up 10 percent from previous forecasts of €400m.

No comments:

Post a Comment