Irish Ryanair has improved earnings outlook. In the current fiscal year ending in March 2015, Europe's largest low-budget carrier hopes to earn 620-680 million euros amid the previous forecast of 620 million figure as the top bar.
Low cost Ryanair airline has sharply increased quarterly profit
According to the company, its net profit for the reporting period increased by 152% compared to the same period last year and amounted to 197 million euros. This figure significantly exceeds all expectations of analysts, who on average stayed at around 157 million euros.
Management of low-cost carrier achieved such unexpected results due to a sharp increase in demand during Easter. In addition to the factor of Easter, profit growth contributed actively by promoting the carrier pre-order tickets. At the opening of trading on the London Stock Exchange, Ryanair shares on the background of the successful financial report significantly increased in price, adding 4% to the capitalization.
In general, the company managed to increase passenger traffic by 4% to 24.3 million and the average occupancy will hit 86%.
Meanwhile, last year for the first five years, the company informed about profit decline. In response, Ryanair has improved the services provided, softened the requirements for hand luggage and reduced additional fees. Characteristically, the so-called traditional European carriers such as Lufthansa and Air France-KLM, by contrast, estimates worsen annual profits.
Recall, founded in 1985, Ryanair Holdings Plc – registered in Luxembourg Irish airline with headquarters in London – is the largest discounter, i.e. budget airline, which provides a run down set of services. Ryanair is ranked seventh in the list of the most reliable airlines in the world, making more than 1,400 flights a day.