Ryanair's drive to improve its image is showing signs of paying off after it upgraded its forecast for annual passenger traffic.
The Dublin-based carrier has softened its stance on baggage charges and booking conditions and introduced allocated seating and a new business service in an effort to improve its customer experience.
Ryanair's chief executive Michael O'Leary told shareholders in Dublin that the initiatives meant the airline now expected to fly 87 million customers in the year to March 31, compared with the 86 million previously forecast.
He said: "Our customers and our shareholders have responded favourably to our improving customer experience, our better digital platform and the positive initial uptake of our Business Plus service."
Mr O'Leary also raised Ryanair's profits guidance towards the upper end of its previously guided range of between €620m and 650m.
The signs of improved demand gave a boost to shares in other carriers, with easyJet and British Airways owner International Airlines Group up 2%.
Ryanair said it also expected to benefit from the opening of new bases in Cologne, Gdansk, Glasgow and Warsaw, as well as greater flight frequencies and schedules from Dublin to UK cities and European capitals.
Mr O'Leary warned there was still uncertainty over the full-year performance due to little visibility on fare yields in the October to March period.
Ryanair's post-tax profits were 8% lower at €523m in the year to March 31 after a price war left average fares 4% lower at a time of rising fuel costs.