Irish low-fare carrier Ryanair has reported a 59% jump in after-tax profits for the year ended 31 March as its business continues to grow rapidly.
After-tax profit totalled €239 million ($281 million), up from €150 million the previous year. Earlier this year, Ryanair forecast a full-year net profit of €235 million.
Revenue was up 35% to €843 million and the number of passengers carried rose by 42% to 15.74 million. Average load factor increased to 84% from 81% and the carrier says this was "primarily due to a 6% reduction in average fares".
While revenue increased 35%, operating costs were up 26%, helping boost after-tax margins to 28% from 24%.
"These results demonstrate how robust Ryanair's lowest-fares business model is in Europe," says the airline. "Ryanair has - for the 15th year in a row - delivered increased profits, despite a 6% reduction in average fares, at a time when most of our competitors are reducing capacity and announcing losses."
However, the carrier warns its financial performance over the past year has been "exceptional", adding: "We have repeatedly stated that profit margins of almost 30% are a one-off and non-sustainable."
Ryanair's plan is to grow traffic on average by 25% a year and to maintain an after-tax profit margin of about 20%.
Source: Flight International
