Ryanair has reported a 20% increase in after tax profits for the year to the end of March. After tax profits rose to almost €481m from €401m the previous year, while revenues rose by 21% to €2.714 billion.
However, the airline warned that if oil prices stay at around $130 a barrel it would expect to only break even in the year ahead. It said that the over-riding concern for airlines, passengers and investors currently is the 'irrational price of oil'.
Ryanair said its unadjusted net profit fell to €390.7m from €435.6m a year earlier once it had included exceptional items, including a €91.6m write down in the value of its stake in Aer Lingus. Ryanair owns over 29% of its Irish rival.
Earnings per share increased by 22% to 31.81 cent for the year. The airline said this reflected its increased profitability and a share buyback of 59.5m shares during the year. Ancillary revenues grew by 35% to €488m, on the back of strong growth in onboard sales and excess baggage revenues.
Ryanair said its passenger numbers rose by 20% to 51 million, while the airline added 30 new planes during the 12 month period and opened three new bases at Bournemouth, Edinburgh and Belfast.
The budget airline said it was better placed than all other European airlines to absorb higher oil costs, even if it means profits fall in the short term.
'Based on forward bookings, we now believe it likely that average fares for the coming year will rise by approximately 5% and if oil prices remain at $130 per barrel, then we expect to accordingly breakeven for fiscal '09,' CEO Michael O'Leary said in a statement.
The airline had previously said it expected a 6% rise in net profit this year at best, although its worst-case scenario had been for a 50% drop.
Ryanair, which said last month its fuel needs were mostly unhedged for the current year, predicted oil would become cheaper over the medium term, helping its earnings rebound strongly, but it was not sure when this would happen.
'Higher oil prices will increase the attraction of Ryanair's guaranteed lowest fares, as consumers become more price sensitive, as competitors increase fares and fuel surcharges, and as many European airlines consolidate or go bust, a development which we believe is inevitable if oil prices remain above $100 this winter,' O'Leary said.
Ryanair shares closed up 14 cent at €2.84 in Dublin.
