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Ryanair announces 40% increase in half year profits - and says it's ready for a fare war

Ryanair has announced a 37% increase in half year profits after tax to €1.088bn. The results...
Newstalk
Newstalk

08.07 2 Nov 2015


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Ryanair announces 40% increase...

Ryanair announces 40% increase in half year profits - and says it's ready for a fare war

Newstalk
Newstalk

08.07 2 Nov 2015


Share this article


Ryanair has announced a 37% increase in half year profits after tax to €1.088bn.

The results which were higher than even the most buoyant market expectations follow what Ryanair calls “a very rare confluence of favourable events” including stronger sterling, poor summer weather conditions in Northern Europe and further savings on unhedged fuel prices

Traffic during the six-month period rose by 13% to 58m and the airline is now upping its full year passenger forecast to 105 million from 104 million.

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Ryanair will have a 340 aircraft fleet by the end of the year and another 330 are on order.

Given this additional capacity and current rate of growth, it has increased its long-term traffic target from 160m passenger to 180m by 2024.

The airline is raising its full year net profit guidance to the upper end of the €1,175bn to €1,225bn range that it put out in September, though Ryanair has a history of underplaying its full year performance at this stage.

Chief Financial Officer, Neil Sorahan told Breakfast Business that while the market might anticipate even higher profits, the airline is facing into a much more competitive winter causing fares to fall by about 4% during the fourth quarter of 2015.

He says that the airline is ready to deal with this challenge, "I think we are definitely in the right conditions for a fare war - and that's where Ryanair will truly be a winner, with our low cost base."


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