Ryanair sticks to forecasts as rivals warn on profitMonday 14 July 2014 15.13
Ryanair has no plans to cut its profit forecast for the current financial year despite warnings by rivals Air France-KLM and Lufthansa, Chief Executive Michael O'Leary said today.
Ryanair shares climbed 2% to €6.79 following the comments, which come two weeks before the airline is due to release quarterly financial results for the three months to the end of June.
"While many of our other competitors, Aer Lingus, Lufthansa, KLM have been out with profit warnings, we see no reason to change the range of our guidance for the coming year,"Mr O'Leary said.
Forward bookings are "running cumulatively seven percentage points ahead on a rolling basis into September, October," Mr O'Leary said, adding that this would equate to an increase in passenger numbers of between 4 and 5 million passengers for the full year despite no growth in capacity.
Ryanair in May forecast that it would make a profit of between €580m and €620m in the year to March 2015.
Air France-KLM, Europe's second-largest traditional network carrier last week warned its 2014 profit could be as much as 12% lower than previously predicted, mainly due to overcapacity and resulting weak prices.
Lufthansa last month cut back its profit targets for the next two years, citing competition with low-cost rivals like Ryanair and Easy Jet as one of the factors.