Irish budget carrier Ryanair has raised its full-year net profit expectations by more than 10% to €390 million ($505 million) from its previous estimate of €350 million.
The airline revised its forecast as it disclosed a 30% increase in its third-quarter post-tax profit to €47.7 million. In the three months to 31 December 2006 its revenues also rose by a third to €493 million.
Ryanair’s revenue figure was lifted by a 7% increase in average fares, a 19% rise in passenger numbers to 10.3 million, and strong growth in ancillary sales which helped to offset a 52% rise in fuel costs to €175 million.
This better-than-expected performance during the second half of the year is partly due to the reduction in oil prices which, says Ryanair, is set to reduce the cost of fuel not already hedged.
Ryanair adds that yields over the fourth quarter will be in line with last year’s, as opposed to the small decline it had previously anticipated, while passenger numbers will increase by 25%.
Over the first nine months of this year Ryanair’s profit after tax increased by 35% to €377 million.
Source: FlightGlobal.com
