Ryanair reports 80% profits surge but issues warning
Ryanair has announced record profits of €115.7m for its first quarter ended June 30, 2006, but warned the 'buoyancy' is not expected to continue at the same level for the rest of the year.
Traffic grew by 25% to 10.7m passengers, yields increased 13%, ancillary revenues climbed 31%, and total revenues were up by 40% to €566.6m, the no-free-frills airline said today.
Unit costs excluding fuel fell by 2% (including fuel they rose by 6%) as fuel costs rose by 52% to €167.5m. The increase in profitability boosted cash balances which rose by €212.4m to €2.18bn. As a result, Ryanair's adjusted after-tax margin for the quarter rose by four points to 20%.
Adjusted net profit increased by a record 80% to €115.7m. This figure excludes a receipt, net of tax, of €5.2m arising from the settlement of an insurance claim for work done on six Boeing 737-200 aircraft.
Ryanair boss Michael O'Leary said: "These…profits…reflect a much stronger yield environment despite substantially higher oil prices. We would caution however, based on advanced bookings, that we do not expect this yield buoyancy to be maintained at similar levels during the second quarter or indeed the second half of the fiscal year."
The airline continues in expansionist mode, added Mr O'leary. "We plan to announce two new bases over the coming months with launch dates in early 2007, as well as further expansion of our existing bases," he said.
"We remain on target to achieve our objective of becoming the world's largest international scheduled airline by passenger traffic, whilst at the same time growing profitability and reducing costs for the benefit of our passengers, our people and our shareholders," he added.
