Ryanair Posts Increase In Profits

Ryanair has announced a 7% increase in its half-year profits.

In a report published today, the airline recorded a rise in H1 profits to €1,168 million, with AGB and lower fares delivering 12% traffic growth to 65 million customers. It also cited a 2% jump in load factor to 95%. In addition, average fares fell by 10% to €50.

However, H1 unit costs also fell by 10%.

Highlights of the half-year include new routes and traffic growth for the company, as they opened 73 new routes and six new bases. The airline is also preparing to take delivery of 31 new aircraft and open six more bases in Bucharest, Bournemouth, Hamburg, Nuremberg, Prague and Vilnius.

In July of this year, Ryanair said it became the first airline to carry over 11m international customers in a calendar month.

The issue of Brexit was also addressed in the report, and the airline said it expects to see weaker Sterling and slower economic growth in both the UK and Europe. However, it said it had responded to this reducing its planned UK growth in 2017 from 12% to around 5%.

Michael O'Leary, CEO, Ryanair, said: "We are pleased to report this 7% increase in H1 profits, which was a creditable performance in difficult market conditions due to repeated ATC strikes, terror events, and the adverse economic impact of the Brexit vote in June which saw Sterling weaken materially over the peak summer period.

"We responded by accelerating our Always Getting Better ('AGB') customer experience programme, and using our lower costs base to stimulate stronger forward bookings with lower fares."

(JP/LM)