Ryanair Increases Q1 Profit On Easter Boost
Ryanair reported a 55 percent increase in net profit for the first quarter of 2017, boosted by the inclusion of Easter this year.
After tax profit for the quarter to end June came in at EUR€397 million (USD$462 million), from last year’s €256 million. The result was partially due to a strong April and further improved by Easter falling in the first quarter this year.
Ryanair chief executive Michael O’Leary said the result was offset by adverse sterling and lower bag revenue as more customers switched to its two free carry-on bag policy.
Ryanair flew 35 million passengers in the quarter, a 12 percent increase, which helped push the quarter’s revenue up to just under €1.69 billion, a 13 percent lift.
The Irish low cost carrier reduced its unit costs by 6 percent as it saved money on fuel. It sees further fuel savings for the full year as hedges now cover 90 percent of the total.
Ryanair took delivery of 14 new Boeing 737s during the quarter to bring its fleet size to 397. It also added an order for 10 additional 737 MAX-200s to a previous order for 100.
Looking forward, the Irish airline said it continues to be concerned at the uncertainty surrounding the terms of Britain’s exit from the European Union. It will continue to campaign for the UK to remain in the EU Open Skies agreement.
First half guidance is for average fares to fall by approximately 5 percent as the airline grows H1 traffic by almost 11 percent. It increased its full year passenger target by 1 million to 131 million on the back of the first quarter’s higher load factors.
Its guidance for full year profit after tax continues to lie in a range of €1.40 billion to €1.45 billion.