Ryanair Profit Soar 32% On Higher Fares

No-frills carrier Ryanair has seen half-year profit rise by a third, on the back of fare increases and being "nicer" to passengers.

It said a 5% rise in ticket prices and 4% boost in seat loading were key factors behind the 32% rise in pre-tax profit, to €907.5m (£709m), in the six months to the end of September.

The average fare rose 5% in the period, to €68.95 (£53.90).

Speaking to Sky's Eamonn Holmes, Ryanair chief executive Michael O’Leary said: "We've had a very strong summer, by keeping fares low (in comparison to competitors) and being nicer to our customers."

The company has successfully cut its overheads, improved website offerings and expanded its business passenger options in a battle with key rivals EasyJet (Other OTC: EJTTF - news) and British Airways, amid an ambitious plan to overhaul its attitude to customers.

Mr O'Leary added: "It's a new-found experience I must admit for me, but if it works this well I wish I'd been nicer to our customers much earlier. It's better late than never.

"We've been listening to our customers in the last 12 months … I think this being nicer to customers is really a new and winning strategy for me and Ryanair."

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.

Shares (Berlin: DI6.BE - news) were up 8% in early trading as a result of the profit boost.

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

Mr O'Leary also confirmed the airline was considering an entry into the packaged tour market, but downplayed talk of transatlantic routes in the near-term.

He said a lack of long-haul aircraft hampered the idea, but with a big order book for short-haul planes he expects a near-doubling of annual passenger numbers to 150 million in the next decade.