Ryanair profits soar

DUBLIN  Irish airline Ryanair’s first-half net profits soared by nearly 40% on keen demand, the strong pound, fuel savings and poor weather conditions in northern Europe, it said Monday.
The Dublin-based carrier added in a results statement that it was on target to hit the upper end of its annual earnings forecast, aided also by ongoing improvements to customer services.
Earnings after taxation jumped 37% to 1.09 billion euros (USD1.2 billion) in the six months to the end of September, compared with 795 million euros a year earlier.
Passenger numbers swelled 13% to 58.1 million people and revenues grew 14% to 4.04 billion euros.

inside no 9“We have enjoyed a bumper summer due to a very rare confluence of favourable events including stronger sterling, adverse weather in northern Europe, reasonably flat industry capacity and further savings on our unhedged fuel,” said chief executive Michael O’Leary.
He added that the airline’s “Always Getting Better” customer services programme was “driving stronger forward bookings, higher load factors” and “accelerating traffic growth.”
Ryanair predicted full-year net profit would be towards the upper end of its forecast range of between 1.175 to 1.225 billion euros.
Aviation analyst Stephen Furlong with Dublin-based stockbrokers Davy said it was “an exceptional performance”.
Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers noted that “Ryanair’s ascent in comparison to former flag carrying competitors shows little sign of slowing”.
He added: “New bases and routes continue to be undertaken, the group’s stranglehold on costs is now the template rivals aspire to, while the group remains in a key position to lead future industry consolidation.”
O’Leary said it was now the airline’s target to carry 180 million passengers per year by 2024, from an earlier goal of 160 million.
The carrier’s chief marketing manager Kenny Jacobs said Ryanair was setting this target on the back of “a very strong two years.”
“We’ve got 330 aircraft on order in the next nine years so that gives us the platform that we need to get to a business with 180 million customers by 2024, which would give us about 24 percent of the market,” he told Irish radio RTE.
O’Leary said lower fuel costs would save the airline 430 million euros next year, while it had already hedged 95 percent of its fuel for next year.
The airline confirmed it will return a special dividend of 398 million euros to shareholders this month after the sale of its stake in Irish competitor Aer Lingus to the International Airlines Group earlier this year.
The company moved to overhaul its approach to customer service in 2014 in the wake of years of negative publicity.
Ryanair said it would carry a record 105 million passengers this year, raising its earlier forecast of 104 million people issued only last month.
Jacobs said Ryanair was expecting a “fare war” between competitor airlines in the coming months.
“We expect fares through the winter, particularly after Christmas, to be very, very competitive.”

sourced:ttrweekly.com