Ryanair has reported a profit after tax of €245 million for its first quarter, up 15 per cent on the €197 million recorded for the same period a year earlier.
Passenger numbers were up 16 per cent to 28 million from 24.3 million and the airline said it was raising its full-year traffic target by 3 million to 103 million.
The airline said its full-year profit would be at the higher ends of its earlier guidance of between €940 million and €970 million due to strong bookings.
“This guidance, which is 12 per cent ahead of last year’s profit, is heavily reliant on the final outturn of second-half fares over which we currently have almost zero visibility,” said chief executive Michael O’Leary.
Revenues were up 10 per cent for the quarter from €1.49 billion to €1.65 billion while earnings per share increased from 14.22 cent to 17.90 cent.
Unit costs excluding fuel fell 7 per cent in the three months under review.
The airline said it is now 70 per cent hedged as far ahead as fiscal 2017 at an average price of $66 a barrel. It said it is 90 per cent hedged at $91 a barrel for the 2016 financial year.
Ryanair said it intends to cut fares by between 4 per cent and 8 per cent over the winter months. It also plans to ground 40 planes between October to March as against 50 last year.
The airline said that fares for the first half of the financial year will be broadly flat.
“Our faster capacity growth and lower oil prices may lead to an aggressive pricing response from competitors who will try to defend their market shares,” said Mr O’Leary.
Having unanimously voted to accept IAG’s offer for its 29.8 per cent stake in Aer Lingus earlier this month, Ryanair said that if the deal proceeds it would expect to receive the proceeds from the sale in September.
