Irish budget carrier Ryanair has raised its full-year profits outlook 10% on better than expected yields after posting first half profits up a fifth to €544 million ($750 million).
Ryanair revenues grew almost a quarter to €2.71 billion, driven by a 12% increase in passengers and yields up 13%. Ryanair chief executive Michael O'Leary said: "The 13% rise in average fares (which includes optional baggage fees) is due to slower growth, a better mix of new routes and bases, as well as rising competitor fares/fuel surcharges. "
Unit costs grew 13% over the period, reflecting longer sector lengths and a 37% jump in fuel costs.
While yields were higher than forecast in the first half, the carrier said its outlook remains cautious but has slightly increased its full-year outlook.
"Based on current Q3 bookings and very limited visibility into Q4 we now expect H2 yields will rise by up to 14%, slightly better than the 12% previously guided," said O'Leary. "Accordingly we are raising our full year net profit guidance by 10% from €400m to €440m, subject of course to the final outturn of Q4 yields."
Source: Air Transport Intelligence news
