Ryanair says that current trading conditions continue in line with expectations. In a trading update, the airline says that the higher fuel prices over the summer months have been partially offset by a combination of other cost reductions and 'slightly more benign yield environment'.
The airline says that passenger volumes and load factors have been strong over the summer, but it adds that it remains cautious as the winter approaches.
In other figures released today, Ryanair says its load factor - which measures how well the airline is filling its seats - stood at 87% in September, unchanged from the same time last year. The number of passengers carried last month rose to 3.02 million, a 27% increase on the numbers carried in September 2004.
In today's trading update, the airline says it expects yields to benefit from the multiple fuel surcharges imposed by the other European carriers.
'However, we anticipate that the fare differential between Ryanair and the flag carriers will be partially eroded as the fuel surchargers are forced to lower their underlying fares to compete with Ryanair's lowest prices,' CEO Michael O'Leary said in London today.
'We therefore remain cautious but comfortable with our previous guidance for the remainder of this fiscal year as we anticipate strong load factors and passenger volumes, but as expected, at slightly lower yields,' he added.
The airline also announced today that it has exercised options to buy nine Boeing 737-800s - worth over $500m - for delivery in late 2007. It also said it intends to sell on the five of its older planes in 2007. These were delivered in 1999.
The company currently operates a fleet of 83 Boeing 737-800s and nine Boeing 737-200s. It says that the nine new planes along with earlier Boeing orders for 147 new planes will see its fleet increase by 151 aircraft to 234 by 2012. Ryanair also has options over another 179 planes for delivery between 2008 and 2014.
Ryanair shares closed down three cent at €6.74 in Dublin.
