Ryanair Raises Profit Forecasts Yet Again
The low-cost airline Ryanair has significantly raised its full-year guidance for the third time in a row within four months. It has reported a 32% rise in the half-year net profit from £621 million to £795 million. The no-frills attached airline has said that the full year profit would now be between £750 million to £770 million compare to its earlier forecast of just £650 million.
Boost In Passenger Numbers Serves The Gain In Profit
Ryanair passenger numbers rose by 4% in the first half of the year and currently it is expecting its traffic to rise by 16% in the second half. However its raised guidance is heavily reliant on the strength of the second-half bookings. The carrier has also said that its average fare rose from 5% in the first half of the year to £54.
Ryanair Has Special Plans For Winter Season
Ryanair chief executive Michael O’Leary has stated that carrier’s slightly higher summer fares would effectively be used to give a considerable cut in the winter fares to the passengers which could be anywhere between 6 and 8%. This would help in balancing the full year prices in a simple and genuine manner.
Ryanair Plans To Enlarge Its Fleet
Ryanair has also signed a carrier deal for around 200 additional Boeing aircraft which are expected to have extra seats and more legroom for the passengers. These planes are due to be delivered between 2019 and 2024. With an enlarged and robust fleet it would significantly lower its unit’s costs as well as operational costs. It would give it an opportunity to cut fare further in a hygienic way.
Ryanair even said that its half year results and raised full year guidance demonstrates that its business model is performing well. However even Ryanair admits that a lot of work is still remains to be done for better returns.