(RTTNews) - Budget airline Ryanair Holdings Plc (RYAAY, RYA.L) Monday reported a profit for the third quarter, mainly reflecting a 17 percent increase in average fares. The Irish company also lifted its profit outlook for the full year.
In the third quarter, profit attributable to equity holders was 14.9 million euros or 1.02 euro cents per share, compared to a loss of 10.3 million euros or 0.69 euro cents per share reported in the previous year.
Pre-tax profit was 15.5 million euros, in comparison with a pre-tax loss of 12.7 million euros in the prior-year quarter.
Michael O'Leary, chief executive of the company said, "Our Q3 Net Profit of ?15m was slightly ahead of guidance due to a combination of benign weather which caused fewer flight cancellations and significant de-icing savings, and a better performance on yields reflecting our planned winter capacity cuts, longer sectors, and higher competitor fares/fuel surcharges."
Total operating revenues grew 13 percent to 844.4 million euros from 746.3 million euros in the same quarter last year, mainly due to a 17 percent increase in average fares. Ancillary revenues increased 6 percent to 177 million euros.
Total revenue per passenger grew 15 percent from last year. Meanwhile, number of passengers declined 2 percent to 16.7 million. Average fares improved 17 percent due to reduced seat capacity, longer sectors, and higher competitor fares/fuel surcharges.
The company said its yield performance improved as it grounded 80 aircraft and cut traffic by 2 percent. Operating margin increased 3 percent from the previous year.
Fuel & oil costs increased 18 percent to 333.6 million euros due to higher fuel prices and increased number of hours flown.
The company also said it now expects its full year profit to exceed its previous guidance of 440 million euros and rise to 480 million euros.
"The EU recession, higher oil prices, the unfolding failure of the package tour operator model, significant competitor fare increases and capacity cuts, has created enormous growth opportunities for Ryanair, as large and smaller airports across Europe compete aggressively to win Ryanair's growth," O'Leary added.
RYAAY closed Friday's regular trading at $33.53 on the Nasdaq.
RYA.L is currently trading at 4.25 pence, up 2.41 percent, on 469 thousand shares on the LSE.
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