Ryanair net profit increases but slower growth expected
Staff writer ▼ | May 23, 2016
Ryanair Holdings said profit growth would slow this year after it posted a 43% rise in full-year net income.Article continues below
Net profit for the 12 months ended March 31, 2016, was EUR 1.24 billion ($1.39 billion), up from EUR 867 million for the prior financial year.
Europe's largest budget airline by traffic benefited from the sharp drop in fuel costs amid a global slump in crude prices, fuller planes and a focus on higher paying passengers.
Sales rose to EUR 6.5 billion from EUR 5.7 billion as the Irish airline carried 106.4 million passengers, 18% more than a year earlier and a new Ryanair record. The airline's planes were packed as load factor, a measure of seats sold, rose to 93%.
After the bumper profit growth, Ryanair forecast a more modest pace for earnings improvement for the financial year that began in April. Profit should rise only around 13% to EUR 1.38 billion to EUR 1.43 billion, the Dublin-based airline said.
The carrier's earnings guidance at the start of a financial year typically is conservative and often adjusted upward in subsequent months.
Rivals have warned that bookings have been impacted by the terror attacks in Brussels in March and that ticket prices are expected to weaken amid strong price competition.
Some carriers, including British Airways parent International Consolidated Airlines Group SA have trimmed capacity growth and accelerated cost cutting efforts to compensate for the fall in ticket prices.
The crash for still undetermined reasons of an EgyptAir flight Thursday flying from Paris to Cairo with 66 people onboard could once more dampen bookings.
Ryanair said ticket prices in the final quarter of the last financial year suffered because of the Brussels attacks and strikes. ■ What to read next
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