Ryanair Q1 profits surge as fare hikes provide lift
Low-cost carrier Ryanair Holdings Plc more than doubled first-quarter profits, driven by a sharp jump in fare rises.
Profit after tax soared to €820m in the three months to June 30 from €360m a year ago, on a 20% jump in revenue to €4.34bn. A company-compiled poll of analysts had forecast earnings of £716m.
Passenger traffic rose 4% to almost 58 million and average fares were up 21% due to Easter timings this year, said chief executive Michael O'Leary.
Ryanair "cautiously expects to recover almost all of last year's 7% full-year fare decline, which should lead to reasonable net profit growth" in the full year, he added.
O'Leary also warned that passenger growth would be constrained over the full year due to "heavily delayed Boeing deliveries".
Reporting by Frank Prenesti for Sharecast.com
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