Ryanair Q1 Profit Falls Amid Higher Fuel Costs - Quick Facts

(RTTNews) - Irish low-cost airline Ryanair Holdings Plc. (RYA.L, RYAAY) Monday reported lower profit for the first quarter, despite higher revenues, due to higher fuel costs and the timing of Easter. The firm backed its full year outlook.

Profit for the quarter - attributable to equity holders of parent fell 21 percent to 78.1 million euros from 98.8 million euros. Earnings per share dropped to 5.40 euros from 6.83 euros.

Profit before tax decline to 88.5 million euros from 112.5 million euros. Passengers climbed 3 percent to 23.2 million.

Total operating revenues from continuing operations increased 5 percent to 1.342 billion euros from 1.284 billion euros, helped by higher ancillary revenues.

Ryanair's CEO, Michael O'Leary, said, "As previously guided higher fuel costs and the timing of Easter led to Q1 profits falling €21m to €78m. Ancillary revenues grew by 25% to €357m (27% of total revenues) driven by the successful development of reserved seating, priority boarding, and higher admin\credit card fees.''

Looking ahead, the firm expects second-quarter yields to rise despite last year's challenging comparables, although yields on close-in summer bookings have been slightly weaker in recent weeks due to the heat wave in Northern Europe.

The airline's outlook remains cautious for the full year as market conditions are tough with recession, austerity, high fuel costs, and excessive Government taxes impacting air travel demand and yields.

Ryanair expects full year traffic to grow 3 percent to 81.5 million and it still has no visibility over next winter's yields.

On the basis that the recent yield weakness in close-in summer bookings does not continue, the airline said it sees no reason to change its full year profit after tax guidance which remains at between 570 million euros to 600 million euros.