1st Feb 2016 07:02
LONDON (Alliance News) - Ryanair Holdings PLC on Monday said its post-tax profit, revenue and customer numbers all increased in the third quarter to the end of December, and it affirmed its guidance for its full financial year, albeit saying the outcome would be dependent on no unforeseen events hitting operations.
The Irish low-cost airline said its profit after tax for the three months to the end of December was EUR103.0 million, more than double the EUR49.0 million it made a year earlier. Revenue rose to EUR1.33 billion from EUR1.13 billion, as the number of passengers carried increased to 24.9 million from 20.8 million.
The group also said it will launch a EUR800.0 million share buyback, which will start later this week and last about nine months. Ryanair said the buyback will raise the total amount it has returned to shareholders to over EUR4.0 billion in the past eight years.
"We are pleased to report that our low fares policy delivered strong third quarter traffic and profit growth," said Michael O'Leary, Ryanair's chief executive.
O'Leary said fare pricing weakened in the later part of the quarter, mainly due to the residual effects of the Paris terror attacks in November, which damped enthusiasm for travel in Europe. As a result of Ryanair launching promotions and cutting prices to keep customers on board, average fares for the quarter fell 1.0%, slightly weaker than previous guidance for flat pricing.
Ryanair said it remains confident it will hit its guidance for the year to the end of March, though cautioned this would be dependent on no further unforeseen events, similar to the Paris attacks, occurring in the quarter and hitting demand.
The group now expects its traffic for the fourth quarter to grow ahead of previous guidance and said this would offset a decline in average ticket prices. It expects its total passenger traffic for the year to hit 106 million, up from 105 million previously, which would be up 17% year-on-year from the 90.6 million it carried in the 2015 financial year.
Margins will also be helped by lower costs, which Ryanair expects to drop around 6.0% for the full year, mainly due to lower fuel prices as a result of the fall in the oil price.
By Sam Unsted; [email protected]; @SamUAtAlliance
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