25th Sep 2014 10:57
(An item published at 0922 BST misstated the previous passenger number forecast. The correct version follows.)
LONDON (Alliance News) - Ryanair Holdings PLC Thursday said the recent launch of its new service for business travelers and the efforts it is making to improve its customer relations are paying off, as it raised its passenger numbers forecast for the current financial year and said it now expects its net profit to come in towards the top end of its previous guidance.
Europe's largest low-cost carrier by passenger numbers said it now expects to fly 87 million customers in the year to March 31, 2015, up from its previous forecast of 86 million. It expects its net profit for the fiscal year to be towards the top end of its previously guided EUR620 million to EUR650 million range. It reported profit after tax of EUR523 million in its last financial year and flew 81.7 million passengers.
"We now expect slightly stronger traffic growth in the winter schedule, as we open new bases in primary airports at Cologne, Gdansk, Glasgow and Warsaw Modlin, as well as significantly increasing flight frequencies and schedules from Dublin to UK cities, and from Dublin to European capitals," Chief Executive Michael O'Leary told shareholders at the airline's annual general meeting in Dublin.
The CEO said it is still too early to be confident about fares and yields in the second half of the fiscal year, but it has raised the profit and traffic guidance based on the continued strength of forward bookings and its improved customer experience moves.
"However, the full year profit outturn continues to be heavily dependent on second-half yields over which we have very little visibility at present. We will give an update on third quarter yield performance at our half year results announcement in early November," O'Leary said.
Ryanair has grown very rapidly, as customers flocked to its cheap-fares, no-frills model when travelling in Europe. However, it has been criticised for treating customers badly, including charging high charges when bookings aren't done properly online, and for taking hold bags.
Ryanair in May admitted it had been annoying its customers with poor service, and introduced measures like allocated seating and relaxed cabin baggage and booking restrictions.
Last month, it then moved to catch up with rival easyJet PLC, which was reporting strong success with a tailored package for business travelers. Ryanair launched its own business class service offering features like premium seats, priority boarding and flexible tickets.
Ryanair shares were up 1.9% at EUR7.45 in London Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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