21-Jul-2010 11:55 AM

Ryanair 1Q2011 profits down on ash cloud costs, maintains FY2011 profit forecast

Ryanair revenue up 16% - financial/traffic highlights for the three months ended 30-Jun-2010:

  • Total operating revenue: EUR896.8 million, +16% year-on-year;
    • Ancillary: EUR203.9 million, +23.4%;
  • Total operating costs*: EUR777.4 million, +25.4%;
    • Fuel: EUR286.6 million, +33.9%;
    • Airport and handling charges: EUR116.2 million, -0.4%;
    • Route charges: EUR99.6 million, +22.7%;
    • Labour: EUR88.8 million, +7.8%;
  • Operating profit*: EUR119.4 million, -22.8%;
  • Profit before tax: EUR104.6 million, -22.3%;
  • Net profit: EUR93.7 million, -23.8%;
  • Passenger numbers: 18.0 million, +8%;
  • Load factor: 83%, stable;
  • Costs per ASM: +9%;
  • Costs per ASM excl fuel: +1%;
  • Average fare**: EUR39, +5%;
  • FY2011 forecast:
    • Yield: +5% to +10%;
    • Net profit: +10% to +15%;

*Includes EUR50 million in Icelandic volcanic ash related costs
**Including baggage

Ryanair reported the following passenger traffic and fleet forecast:

  • Passenger numbers:
    • FY2010: 66.5 million, +14%;
    • FY2011: 73.5 million, +11%;
    • FY2012: 80.0 million, +9%;
    • FY2013: 85.0 million, +6%.
  • Total fleet:
    • FY2010: 232;
    • FY2011: 272;
    • FY2012: 294;
    • FY2013: 299.

Meanwhile, the LCC plans to return EUR500 million to shareholders in Oct-2010, subject to Board approval. [more]

Ryanair: “Our outlook for the year remains cautious and unchanged. We expect passenger volumes will rise by 11% to 73.5 million [ie before any volcanic ash disruptions]. We anticipate that yields in Q2 will rise by between 10% to 15%, but since we have no visibility, we must remain cautious about yields for the coming winter [H2].  We believe it is reasonable to expect that the yield increase for the full year will be within the range of 5% to 10% previously guided. Unit costs excluding fuel will increase by approximately 4%. As a result we expect full-year net profits to rise by 10% to 15% or between approximately EUR350 million to EUR375 million, which remains in line with our previous guidance,” Company statement. Source: Ryanair, 20-Jul-2010.

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