Ryanair raises FY2015 profit guidance after strong 1Q. Warm and fuzzy O'Leary may be working

Ryanair increased its profits substantially in 1QFY2015, as revenue per seat grew faster than cost per seat. By comparison with the same quarter a year earlier, revenues and profits were assisted by the inclusion of Easter in 1Q this year, but the underlying trends still looked favourable.

In spite of its caution over the outlook for average fares in 2H, Ryanair has raised its profit guidance for FY2015, based on higher traffic and load factors and lower cost per passenger than previously expected.

This is in contrast with its profit warning last autumn (and with more recent profit warnings from a number of European legacy carriers) and gives some comfort that its strategic shift to increase the emphasis on customer service may be starting to work.