Ryanair has reported that its net profit rose by 550% in the first three months of its financial year to €136.5m, slightly beating market expectations. But its shares fell 8.5% after it said profit for the full year would be at the lower end of a previous range.
Chief executive Michael O'Leary said the results were distorted by a 42% reduction in the airline's fuel bill. Revenue for the quarter to the end of June was flat compared with the same period last year at €775m. Costs excluding fuel fell by 5%.
Passenger numbers in the period rose by 11% to 16.6 million, which Mr O'Leary attributed to a 13% fall in average fares. Ancillary revenues - which include items such as on-board sales, baggage fees and priority boarding charges - rose by 13% to €165.3m.
Ryanair expects its average fares to fall by about 20% over the whole of its financial year, and traffic to increase by 15%. It also expects full year net profit to be at the lower end of the €200m to €300m range.
Mr O'Leary said the airline had taken advantage of lower fuel prices to hedge 90% of its fuel prices for the first three quarters of its financial year. He said the airline could save €460m in its fuel bill this year.
The Ryanair chief repeated his criticism of taxes on airport departures in Ireland and the UK, and predicted that traffic at Irish airports would fall by 20% this winter.
Speaking on Morning Ireland, Ryanair deputy chief executive Michael Cawley said Ryanair would be finalising its plans for its winter schedule at Dublin Airport in the next two or three weeks. He warned that there would be significant reductions at Dublin and Shannon, blaming the €10 passenger tax and charges at Dublin Airport.
Ryanair also said it took a €13.5m charge on its stake in Aer Lingus, as its rival's share price fell.
Ryanair shares closed down 28 cent at €3.08 in Dublin.
