4th Nov 2019 06:35
(Alliance News) - Irish budget airline Ryanair Holdings PLC on Monday reported a rise in revenue, but a steep rise in costs has hindered profit growth.
For the six months to September 30, Ryanair's revenue was up 11% year-on-year to EUR5.39 billion. Traffic was up 11% to 86 million passengers with an unchanged load factor of 96%.
Air fares were 5% lower, Ryanair noted, due to lower demand in the UK as well as overcapacity in Germany and Austria. Ancillary revenue however was up 28% to EUR1.65 billion.
Group pretax profit was flat at EUR1.26 billion. Fuel & oil costs rose 22% to EUR1.59 billion, and overall costs climbed by 16% to EUR1.29 billion.
Commenting on the Boeing 737 MAX, which has been grounded due to two fatal accidents, Ryanair said it now expects first delivery in March or April 2020, at the earliest, and added the risk of further delay "is rising".
"Our outlook for the remainder of the year remains cautious. We try to avoid the unreliable optimism of some competitors," said Ryanair.
"Full-year traffic will grow 8% to 153 million but we expect a slightly better fare environment than last winter (although we have limited second-half visibility)."
"This, however, remains sensitive to any market uncertainty such as a 'no deal' Brexit. We expect ancillary revenue will grow ahead of traffic growth, supporting full-year revenue per guest growth of 2% to 3%," Ryanair continued.
The airline narrowed its guidance for full-year profit after tax to a range of EUR800 million to EUR900 million from EUR750.0 million to EUR950.0 million previously. Profit after tax for the half year was unchanged at EUR1.15 billion.
By George Collard; [email protected]
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