Ryanair Net Profit Jumps 32% On Higher Fares

No-frills carrier Ryanair has seen half-year net profit rise by a third, on the back of fare increases and improving passenger numbers.

It said a 5% rise in ticket prices and 4% boost in the seat loading were key factors behind the 32% rise in net profit in the six months to the end of September.

The average fare rose 5.2%, to €68.95 (£53.90).

Half-year revenue was up 9% to €3,53bn (£2.76bn), with profit after tax rising from €602m (£470m) to €795m (£620m), compared with the same period last year.

The airline now expects full-year net profit to would now be around €760m (£595m), compared with its previous forecast of €650m (£510m).

Ryanair CEO Michael O’Leary said: "We are pleased to report this significant increase in H1 profits.

While partially due to the presence of Easter in Q1 and a weak prior year comparable, we have also enjoyed a strong summer thanks to our strategy of raising forward bookings and improving our customer experience which has delivered higher load factors and yields."

Passenger numbers are expected to rise by 12% in the current quarter and 20% in Q4.

The company has successfully cut its overheads, improved website offerings and expanded its business passenger options amid its battle against key rivals EasyJet (Other OTC: EJTTF - news) and British Airways.

The company also opened four new summer bases, in Athens, Brussels, Lisbon and Rome.

Looking ahead, the company has extended its forward fuel purchases - known as hedging - for the 2015/16 financial year and beyond.

Fuel costs are of key concern for airlines and Ryanair now expects to save 2% on this overhead in the coming 12 months.