RYANAIR’S SHARE price rose by almost 8 per cent in Dublin yesterday after the airline increased its profit guidance for its financial year just ended.
The airline said its after-tax profit for the year to the end of March 31st would be “not less than €310 million”.
This compares with a previously guided €275 million. Ryanair said this was the result of “somewhat stronger than expected passenger bookings, at better than expected yields, during late February and March in the run-up to the Easter holiday weekend”.
The airline did not provide any guidance on the first quarter of the current financial year. But analysts said the profit forecast figure points to positive trends in the lead-up to the busy summer season. In February, Ryanair posted a net profit after tax and exceptional items of €362.6 million for the nine months to the end of December.
This would indicate its loss in the fourth quarter was about €52 million. Ryanair will announce its full-year results on June 1st.
The airline is forecast to have carried more than 66 million passengers in the financial year just closed. The airline has predicted this will rise to 73 million in the 2010/2011 financial year.
In a note to clients yesterday, Joe Gill, aviation analyst with Bloxham Stockbrokers, said the upgraded guidance showed how a “true low-cost airline model can weather a deep recession and continue expanding”.
“This number implies that yields during Q4 were about flat instead of -10 per cent-plus, and reflects demand stability in certain markets and the benefits of those longer Canary Islands runs that commenced during the quarter,” Mr Gill said.
