Ryanair profit forecast soars after festive travel uplift | Business News


Ryanair has seen its full-year profit forecast climb after a stronger-than-expected performance over Christmas and New Year.

The no-frills airline also says forward bookings for January and April are up by 1%, which it believes will lead to higher average fares.

As a result, the company said that is expecting to carry 154 million passengers in the full financial year, up by one million from previous estimates.

It now forecasts profit after tax for the financial year to reach between €950m (£806m) to €1.05bn (£891m).

It is an increase from previous guidance of between €800m (£679m) and €900m (£764m).

“On the basis of current trading, Ryanair expects to finish close to the mid-point of this new range,” it said.

Shares in the company were up 5.6% at close of trading.

However, the group also acknowledged problems at its Austrian subsidiary Laudamotion, which continued to underperform with average fares lower than expected, even though there was strong traffic growth and planes were full.

Ryanair said: “This is a direct result of intense price competition with Lufthansa subsidiaries in both Germany and Austria who are engaged in below cost selling.”

As a result, net loss at Laudamotion will widen by €10m (£8.49m) to around €90m (£76.4m).

It comes after a year characterised by strikes and grounded planes.

The airline was forced to shut bases in Germany and Sweden after news that deliveries of new Boeing 737 Max planes were to be delayed.

The aircraft has been grounded after being involved in two fatal crashes.

The company narrowly avoided a pilots’ strike in September when a union called it off.

Members of the British Airline Pilots Association (Balpa) were set to walk out amid an “acrimonious” relationship with Ryanair, but called off the strikes at the last minute.


Source link


Please enter your comment!
Please enter your name here