Ryanair posts record profits of €268.9m

Ryanair Holdings posted record annual earnings today as fare rises by rival airlines pushed more passengers its way.

Ryanair Holdings posted record annual earnings today as fare rises by rival airlines pushed more passengers its way.

Europe's largest low-cost carrier reported profit after tax in the 12 months to end-March of €268.9 million, up 19 per cent from the previous year.

The figure, which beat a median forecast of €248 million from a Reuters poll of 16 analysts, was adjusted for one-off charges.

Revenue climbed 24 per cent to €1.34 billion, while passenger volumes rose 19 per cent to 27.6 million.

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Shares in the company, which also gave a cautiously upbeat outlook for the year ahead, rose 4.8 per cent to €6.55 in early Dublin trade.

"Our outlook for the coming 12 months is more positive than it was this time last year," chief executive Michael O'Leary said in a statement.

Ryanair said it had benefited from fuel surcharges imposed by rival flag carriers under pressure from rising oil prices, which had further widened the gap between fares. So far, Ryanair has not imposed fuel surcharges.

The airline, which had been forced to slash ticket prices during the year amid intense competition, said it continued to budget for higher oil prices but expected this would be offset by slightly better revenues per passenger.

Ryanair said it had hedged 75 per cent of next winter's fuel needs at rates equivalent to $47 a barrel.

Ryanair 's average yields - revenue per passenger - increased by 2 per cent in the year to end-March, despite a 16 per cent rise in capacity.

The carrier said it was raising its forecast for traffic growth for the coming year by one million passengers to 35 million.