Ryanair posted a 16.5 per cent rise in second-quarter net profit this morning but said it remained cautious in its outlook for the traditionally quieter winter season.
Profit after tax in the three months to the end of September rose to €172.5 million from €148.1 million in the same period last year.
Revenue rose 32 per cent to €541.5 million versus an expected figure of €542 million as the company continued to expand its fleet and network of destinations.
"We continue to remain cautious in our outlook for the remainder of the fiscal year," Ryanair Chief Executive Michael O'Leary said in a statement. "Our full year net profit guidance is unchanged."
The company is forecasting a 10 per cent year-on-year increase in full-year adjusted net profit to €295 million. Ryanair repeated it expected to achieve significant increases in passenger volumes but that yields - the amount of money it receives per seat - were set to be flat in the third quarter and 5 to 10 per cent lower in the fourth quarter.
"This winter we expect that there will be continued intense competition and there will be fewer low fare carriers in the market as higher fuel prices force more carriers out of the industry," Mr O'Leary said.
Having hedged 90 per cent of its fuel costs until March 2006 at an average price of $49 a barrel, the company said it had yet to take out any further insurance against high oil prices but that it was monitoring the market closely with a view to hedging its requirements for summer 2006.