Ryanair First-Half Profit Climbs, Lifts Full-year Outlook Yet Again

(RTTNews) - Irish low-cost airline Ryanair Holdings Plc (RYA.L, RYAAY) Monday reported 32 percent rise in the first-half profit, driven by increase in average fares, as well as load factors. Total revenues were up 9 percent from last year.

The firm also raised its profit outlook for full year 2014. The shares rose about 9 percent in the morning trade.

In July end, while reporting its first-quarter results, Ryanair had boosted its full-year profit forecast, adding that it is dependent on the final outturn for second-half yields.

"However, we caution that this raised guidance remains heavily reliant on the strength of close in bookings for the remainder of Q3, and in particular Q4 where we presently have very little visibility," the company said.

For the first half, the company's net profit attributable to equity holders of the parent climbed to 795 million euros from 601.9 million euros in the previous year.

Total revenues for the period rose 9 percent to 3.54 billion euros from 3.25 billion euros a year ago. Ancillary revenue grew 4 percent to 741.3 million euros, in line with traffic growth.

Passenger traffic increased 4 percent to 51.3 million customers from 49.2 million customers a year earlier.

First-half load factors jumped 4 percent points to 89 percent, due to a stronger Easter period and the success of Ryanair's "Always Getting Better" customer experience improvements, the company noted.

Further, average fare for the first half rose 5 percent to 54 euros.

Half-year unit costs declined 2 percent from the preceding year. Excluding fuel, it rose 3 percent mainly due to higher landing and handling costs at primary airports, as well as increased marketing spend to support the company's "Always Getting Better" programme.

CEO, Michael O'Leary said, "We are pleased to report this significant increase in H1 profits. While partially due to the presence of Easter in Q1 and a weak prior year comparable, we have also enjoyed a strong summer..."

For the second quarter, the company posted profit attributable to equity holders of parent of 598.2 million euros, up from 523.8 million euros last year. Total operating revenues climbed to 2.04 billion euros from 1.91 billion euros a year earlier.

Looking ahead, the firm said that as a result of 2.2 million additional second half passengers and falling unit costs, full-year net profit will significantly exceed previous guidance of 650 million euros to a new range of between 750 million euros to 770 million euros.

The airline sees its passenger traffic to grow by 12 percent in the third quarter, and 20 percent in the fourth quarter.

RYA.L is currently trading at 8.27 pence, up 8.89 percent, on a volume of 1.38 million shares.