A strong Easter bank holiday weekend helped Ryanair to a 55% rise in profit for the three months to the end of June.
The airline reported a profit after tax of €397m for the quarter, which was comfortably ahead of the consensus forecast from analysts of €366m.
Ryanair generated €1.9 billion in revenue during the quarter, up 13% on the same period last year and carried 35m passengers (+12%).
Ryanair notes the results are flattered by the fact that Easter fell in April this year, skewing comparisons with 2016, when it was in March.
Ryanair announces Alitalia bid as well as positive Q1 results pic.twitter.com/Vog9eQBw6g
— RTÉ Business (@RTEbusiness) July 24, 2017
The airline said it still expects full-year profit to fall between €1.4 billion and €1.45 billion.
Commenting on the results, Ryanair CEO Michael O’Leary said: "We are pleased to report this 55% increase in PAT to €397m but caution that the outcome is distorted by the absence of Easter in the prior year Q1.
"While Q1 average fares rose by 1% to just over €40, this was due to a strong April (boosted by Easter) offset by adverse sterling, lower bag revenue as more customers switch to our two free carry-on bag policy, and yield stimulation following a series of security events in Manchester and London.
Mr O'Leary has called for clarity on a possible bilateral deal to replace the EU Open Skies agreement by June of next year at the latest.
He said it was necessary to have clarity by the second quarter of 2018 so the airline can publish its summer 2019 schedule.
If Ryanair does not have certainty, he warned the airline may be forced to cancel flights and move some, or all, of its UK-based aircraft to continental Europe from April 2019.
In an investor note on the results, Davy said: "Ryanair continues to deliver standout sector unit costs (-3% ex-fuel in the quarter) in a deflationary pricing environment – while average fares were up 1% in Q1.
"The airline continues to guide H1 fares down 5% and H2 winter fares down 8%. Full year guidance is unchanged at €1.4-1.45 billion; we are unlikely to materially change our estimates and retain our €18.50 price target."
Ryanair says makes 'non-binding' offer for Alitalia
Ryanair also revealed today it has made a "non-binding offer" for its loss-making Italian rival Alitalia.
"We have made a non-binding offer for Alitalia. As the largest airline in Italy, it's important we are involved in the process," Ryanair said in a statement after Italian media said on Friday that about ten such bids had been made.
Separately, Ryanair warned rivals it may cut its fares in late summer by as much as 9% from last year, triggering a share sell-off by investors concerned about the impact on profitability.
Europe's largest airline by passenger numbers, Ryanair has helped drive down short-haul ticket prices in Europe by increasing its capacity by 33%, or about 30m seats, in the past two years.
Some investors thought higher fares in the three months to the end of June were a sign that a period of heavy discounting may be ending.
But management made clear the annual increase was just a blip due to the timing of Easter and that prices would fall sharply in the coming months.
"It's a competitive market out there. You're looking at fares down anywhere between 7, 8, maybe as much as 9 percent," in the three months to 30 September, Chief Financial Officer Neil Sorahan told Reuters.
Ryanair shares are nearly 2.5% lower in Dublin trade today.
