Ryanair reported a better-than-expected 21 per cent rise in first-quarter net profits today.
Europe's biggest low-cost carrier posted a net profit of €64.4 million for the three months to end-June, up from €52.6 million in the same period of 2004, and above the median forecast of €54.4 million given in a Reuters poll of six analysts.
Ryanair chief executive Michael O'Leary
Revenues grew by 35 per cent to €404.6 million, with traffic up 30 per cent in the quarter to 8.5 million passengers.
"These record quarterly results reflect the disciplined and successful roll-out of Ryanair's low fares model across Europe," said chief executive Michael O'Leary.
Yields were 3 per cent higher than 2004 - slightly better than anticipated - despite a 30 per cent increase in seat capacity.
Ryanair said the higher yields were primarily due to the multiple fuel surcharges imposed by the European flag carriers on their short-haul passengers, with the latest round of increases imposed in June.
"These surcharges continue to widen the gap between their high fares and Ryanair's low fares," Mr O'Leary said.
Looking ahead, Ryanair said higher oil prices were expected to be offset by other cost reductions and a benign fare yield environment.
The airline said bookings were down for several days in the immediate aftermath of each of the two terrorist attacks in London last month.
"If there are no further such attacks in London then we expect that our forward bookings will not be materially impacted," Mr O'Leary forecast. "However, if there are further incidents in London, both bookings and yields could be adversely impacted."