Ryanair profits jump 18%

Airline Industry Information, Nov 2, 2004

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Irish low-cost carrier Ryanair has reported an 18% rise in profits for the first half of 2004, beating analysts' predictions and boosting confidence in its full-year performance.

The airline's net income for the first six months of 2004 was EUR200.1m, up from EUR168.9m in the same period in 2003. Analysts surveyed by Reuters had predicted that the airline would record a net income of some EUR187.6m for the period. A spokesperson for NCB Stockbrokers said that the results were a lot more positive than anticipated and that Ryanair stock would keep its 'buy' rating.

In the wake of the results Ryanair said it would keep in place its policy of not hedging against fuel prices and that it was benefitting from fuel surcharges being introduced by its rivals. The airline also revised its income per passenger forecast from a decline of 10-20% to a decline of 5-10%, Reuters reported.

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