5-Nov-2013 12:28 PM

Ryanair operating profit up 6% in 2QFY2014, downgrades full year profit guidance on soft yield

Ryanair revenue up 5% – financial highlights:

  • Three months ended 30-Sep-2013:
    • Total operating revenue: EUR1913 million, +5.0% year-on-year;
      • Ancillary: EUR356.2 million, +19.6%;
    • Total operating costs: EUR1299 million, +4.6%;
      • Fuel: EUR624.7 million, +7.5%;
      • Airport and handling charges: EUR190.7 million, +2.1%;
      • Route charges: EUR163.3 million, +10.6%;
    • Operating profit from continuing operations: EUR613.9 million, +5.7%;
    • Net profit: EUR523.8 million, +5.4%;
  • Six months ended 30-Sep-2013:
    • Revenue: EUR3255 million, +5% year-on-year;
      • Ancillary: EUR712.7 million, +22.1%;
    • Total operating costs: EUR2538 million, +6.0%;
      • Fuel: EUR1201 million, +6.8%;
      • Airport and handling charges: EUR367.0 million, +4.0%;
      • Route charges: EUR318.5 million, +11.7%;
    • Operating profit from continuing operations: EUR717.2 million, +0.6%;
    • Net profit: EUR601.9 million, +1.1%;
    • Passenger numbers: 49 million, +2%;
    • Load factor: 85%, +1 ppt;
    • Average fare: EUR52, -2%;
    • Total assets: EUR8914 million;
    • Cash and cash equivalents: EUR1216 million;
    • Total liabilities: EUR5271 million. [more - original PR]

Ryanair: “Market pricing remains weak, so we will continue to promote low fare seat sales throughout the remainder of both Q3 and Q4. Forward bookings are running slightly ahead of last year, but the softness in fares and yields continues. Based on reasonable visibility we expect Q3 fares to fall by 9%, and Q4 (albeit with zero visibility) to fall by up to 10% (without the benefit of Easter which will be in Q1 FY15). Our cost discipline will see sector length adjusted cost per passenger fall by 7% in H2. However the continuing fare and yield softness means that full year profits will be lower than previously guided (EUR570m to EUR600m). We now expect the full year outturn to be between EUR500m to EUR520m due entirely to this lower fare environment.” Source: Company statement, 04-Nov-2013.

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