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Ryanair upgrades profit forecast

Ryanair upgrades profit forecast

After a successful end to last year, no frills airline Ryanair has upgraded its full-year profit prediction.

During the last quarter of 2011, the firm reported a profit of £15 million, in comparison with the loss of £10 million it reported exactly a year before.

This is likely due to a rise in fares, a cut in capacity and improved winter weather.

Ryanair now forecasts that its full-year profits will rise to £480 million from £440 million.

The carrier's revenue rose by 13% up to £844 million, as air traffic dropped 2% and typical fares increased by 17%.

Thanks to a 7% rise in sector lengths and an 18% rise in the cost of fuel, unit costs increased by 11%.

Apart from fuel, there was a 1% decline in sector length adjusted unit costs.

Michael O'Leary, Ryanair's chief executive, said: "We are pleased to report a third-quarter profit of £15 million which is ahead of expectations due to benign weather conditions in December and a better yield performance as we grounded 80 aircraft and cut traffic by 2%."

 

Copyright Press Association 2012
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