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.