Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 5°C

ESTD 1874 Search

UK/Stansted: Ryanair increases profits forecast and says it will increase new routes and frequencies at Stansted

09:02 28 July 2014

Ryanair says it will be upping its flights at Stansted

Ryanair says it will be upping its flights at Stansted

Ryanair’s new routes and frequencies at Stansted and Dublin airports are due to increase “substantially” while there will be more investment to make routes attractive to business customers, the carrier said as it set out aggressive plans for expansion in Europe.

shares

The budget airline raised its full-year profits guidance today after more than doubling first quarter earnings.

Chief executive Michael O’Leary said it was “overrun with growth offers” from airports on the continent as rivals scaled back operations.

But he warned against “irrational exuberance” as the second half of the financial year was likely to see downward pressure on fares as a result of competition and Ryanair’s increased capacity. Shares opened 5% higher.

Profits after tax for the Dublin-based carrier in the first quarter to June 30 were up 152% to 197 million euros (£156 million) though Mr O’Leary said this was distorted by the absence of Easter in the same period last year.

The carrier said more passengers, fuller flights and shaved costs meant full-year earnings were now expected at 620-650 million euros (£491-£514 million), up from 580-620 million euros (£459-£491 million).

For the first quarter, passenger numbers were up 4% to 24.3 million and they travelled on planes that were 86% full after a rise in load factor of 4%.

Revenues were up 11% to 1.34 billion euros (£1.06 billion) as fares rose 9%, boosted by a strong Easter period.

The carrier managed to raise “ancillary” revenues by 4% as reductions in airport and baggage fees were offset by a rising uptake of allocated seating.

Mr O’Leary said four new bases at Athens, Brussels, Lisbon and Rome were “performing strongly” with new bases due to open this winter at Cologne, Gdansk, Warsaw and Glasgow.

New routes and frequencies at Stansted and Dublin are due to increase “substantially” while there will be more investment to make routes attractive to business customers.

Mr O’Leary added: “We are overrun with growth offers from primary European airports whose incumbent flag and regional carriers continue to cut capacity and traffic.

“These new airports along with our existing 69 bases offer Ryanair significant growth opportunities as the first of our 180 new Boeing order delivers this September.”

A new business service will be launched in September to include same-day flight changes, bigger bag allowances, premium seat allocation and fast-track through security at many airports.

The carrier plans to return 520 million euros (£411 million) via a special dividend to shareholders in the fourth quarter.

Mr O’Leary said that, based on the first quarter results and forward bookings, it was clear the firm is on track for a strong first half.

“However we would strongly caution both analysts and investors against any irrational exuberance in what continues to be a difficult economic environment, with some company-specific challenges in H2,” he added.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Arlingtons new art exhibition, Liz and Ken Ambler at the launch

Music, art, wine and a great deal more

Steven and Debbie Morgan pictured when they took over The Royal Oak earlier this year

Firefighters were called to a pub last night following a water leak which caused flooding.

Abby Curtis who is opening Pump and Grind coffee shop in Great Colman Street with Tom Kerridge

The business team behind a new cafe have said they are disappointed they will not able to serve alcohol when opening for the first time on Saturday.

Bury Council Building Angel Hill.

The new chairman of Bury Town Council has said he intends to make the authority relevant after claiming it has done “almost nothing” for the last few years.

Rachel Pearlman, Zoe Bradbury, Jack Northcott and Jordan Keeble of Ginger Nut Media team  at the OXO Tower in London, after being awarded as the best level of support during Advanced Apprenticeships.

A digital advertising firm is celebrating after scooping an award for its supportive training regime.

Royal Mail has seen a rise in annual profits.

Royal Mail today reported a rise in underlying annual profits as a squeeze on costs helped offset a lower than expected performance from its parcel business.

Tesco  Group Chief Executive Dave Lewis

Tesco paid £4.1 million to new boss Dave Lewis in his first six months after he was brought in from consumer goods group Unilever to turn around the embattled supermarket.

A branch of cash and carry chain Booker

The country’s largest cash and carry chain is to buy Londis and Budgens in a £40million deal to boost its scale amid the ongoing supermarket price war.

Colchester High Street

An alliance of businesses in central Colchester have voiced opposition to out-of-town development proposals they say could deal a “fatal” blow to the town centre.

Niall Dyer, managing director of Plinth 2000, which is flying the flag from Britain in export markets.

Suffolk treatment couch manufactuer Plinth 2000 has delivered its largest-ever export order.

Most read

Most commented

Topic pages