Ryanair Q1 Profit Surges On Strong Easter; Cautiously Lifts Full-year View

(RTTNews) - Irish low-cost airline Ryanair Holdings PLC (RYA.L, RYAAY) Monday said first-quarter profit increased significantly from the previous year, supported by a very strong Easter. The company also boosted its full-year profit forecast, adding that it is dependent on the final outturn for second-half yields.

"However we would strongly caution both analysts and investors against any irrational exuberance in what continues to be a difficult economic environment, with some company-specific challenges in H2,'' Ryanair's CEO Michael O'Leary said.

Profit attributable to equityholders of the parent climbed to 196.8 million euros ($264.3 million) from 78.1 million euros in the prior year. The airline noted that the results are somewhat distorted by the absence of Easter in the prior year period.

Profit before tax was 223.6 million euros compared with 88.5 million euros last year.

Total operating revenues from continuing operations improved 11 percent to 1.496 billion euros from 1.342 billion euros in the prior year.

Traffic grew 4 percent to 24.3 million as load factor rose 4 percentage points to 86 percent.

Average fare rose 9 percent, boosted by a strong Easter period. Unit costs fell 2 percent, and rose 1 percent when fuel is excluded.

Based on the first-quarter results and the strong forward bookings, Ryanair said it is on track to deliver a strong first half, in which traffic is expected to grow 3 percent, and fares are estimated to rise 6 percent subject to late booking fares in August and September.

Ryanair now expects full year traffic to grow 5 percent to 86 million. Based on this increased traffic and higher load factors, along with a slightly improved performance on unit costs, the firm cautiously raised its full-year profit after tax guidance to a range of 620 million euros to 650 million euros from the previous range 580 million euros to 620 million euros.

The airline again cautioned that this guidance, which is about a 21 percent rise over last year's net profit, is heavily reliant upon the final outturn for second-half yields over which it currently has zero visibility.

RYA.L settled up 0.1 percent on Friday at 6.85 pence.